Increased longevity poses a real risk to DB plans. Mortality improvement continues to trend upward, and this is particularly pronounced at older retirement ages.
Many public and private employer pension funds have under-reserved for longevity risk, a new report from Swiss Re reveals. The report, Longevity risk and protection for Canada, provides some solutions insurers may wish to think about. The report identifies more than $1 trillion of pension assets and immediate annuity reserves as “at risk” in Canada […]
Pension buyout arrangements: are plan sponsors and members buying in? The credit crisis has served to underscore plan sponsor risks associated with defined benefit (DB) pension plans. Does the solution to effectively managing those risks lie in passing on the responsibility for the plan’s financial obligations to a third party, i.e., an insurance company? This […]