Defined Benefit Plan Risk Management

— RETIREMENT

Defined Benefit Plan Risk Management

Choosing the right strategy to address long-term liabilities.

What is the funding status of your defined benefit plan? Do you know how mortality rate changes will affect plan expenses? Is now the right time to freeze or terminate your plan? These are just some of the questions Lockton helps defined benefit plan sponsors address through sensible strategies for risk transfer, plan design, and the fiduciary process. 

Addressing and avoiding the costs of liability

The economic cost of retaining pension liabilities is on the rise, contributing to increased interest in risk reduction strategies. We guide employers through the process of evaluating their options, estimating expenses, and strategy implementation.

Whether the investing approach is liability-driven or one of the more comprehensive risk transfer solutions, Lockton’s skilled analysts and actuaries can provide advice and support to a vast range of issues including:  

  • Investment policy drafting  

  • Investment manager selection  

  • Investment monitoring  

  • Market and economic analysis  

  • Vendor search and selection 

  • Annuity selection  

  • Project management and transition support  

  • Employee Retirement Income Security Act (ERISA) counsel related to Fiduciary Tax and Pension Benefit Guaranty Corporation (PBGC) compliance  

  • Plan design, governance, documentation and audit support  

Our team provides defined benefit plan sponsors with customized investment analysis and vigilant monitoring of the plan’s funded status. This commitment includes considering modeling assets and liabilities under a variety of scenarios that reflect different interest rates, market returns, or other assumptions to forecast funding status to anticipate contribution trends.  

Investment advisory services offered through Lockton Investment Advisors, LLC, a SEC registered investment advisor. View the Privacy Policy and other Disclosures. (opens a new window)If you have an issue or concern please contact, Rob Hessling, Chief Compliance Officer of Lockton Investment Securities, LLC a registered broker-dealer and member FINRA, SIPC at 816.960.9807.