Laurie E. Vance, a senior vice president in Fidelity Investments’ consulting services, says that “derisking is such a broad term at this point — it applies to everything.” For practical purposes in retirement plans, Vance says Fidelity divides the strategy into two formats: successfully matching assets to liabilities (“likely making them a little more conservative”) and companies that seek to strip the risk altogether.
“Over the past few years it’s [been] closing the plan, freezing the plan — now, we’re actually seeing them trying to shed the liability,” Vance said last week at a breakfast discussion on benefits consulting hosted at Fidelity’s Washington, D.C., office. The breakfast touched on many topics, but its central theme was DB plan cost-reduction with an emphasis on risk.
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