Milliman infographic: Pension liabilities

When the discount rate increases the projected benefit obligation (PBO), or pension liability, decreases, and vice versa. This relationship explains the volatile nature of pension liabilities and demonstrates why liabilities-driven investment strategies, which manage funded status and limit volatility of pension liabilities and asset returns, are useful.

PFI-graphic_final-screenRes_600x

To read the entire Corporate Pension Funding Study, click here.