Defined Benefit

Our experience with pension plans goes back to our inception in 1988. We have helped our corporate clients make better informed decisions regarding their defined benefit pension plans. 

We are guided by the following principles to assist in the management of your pension plan:

  • The purpose of a Defined Benefit Plan is to meet its liabilities.
  • Structure that provides dependability of meeting these liabilities is the priority.
  • Matching liabilities with consistent investment return enhances this dependability.
  • An optimal portfolio mix of dissimilar investment strategies attains consistency of investment return.
  • Investment strategies that provide downside protection match liabilities more effectively.

In order to analyze the firm’s liabilities, we conduct an asset/liability study to determine an appropriate asset allocation strategy for the Plan.  The Plan’s overall funding strategy is to combine asset returns with future contributions so that total plan assets will be sufficient to pay projected future benefits at the required time.  The study models the Plan’s liabilities each year and compares them with the projected yearly asset values for a variety of asset mixes.  Using the demographic, salary growth, and liability discounting assumptions, we project plan liabilities and assets for each year in the projection period.  The variations in asset mixes are incorporated into the projections through a series of simulations to determine the effects on the plan.