Designing a pension plan de-risking strategy

Milliman consultants helped one client prepare a strategic and practical strategy to de-risk their defined benefit (DB) pension plan. The consultants began discussions by explaining how the path to de-risking included a wide spectrum of options ranging from risk retention via modified plan design to third party risk transfer. The advantages and disadvantages including costs associated with several de-risking options were also discussed. The client’s decision would depend on their risk tolerance and willingness to incur additional short-term costs. Milliman’s Zorast Wadia explains how the firm helped the client meet their overall business objective in his case study “De-risking: Options available to reduce your pension plan footprint.”

Leave a Reply