Financial institutions are increasingly exploring areas where external sources of capital can used to de-risk their balance sheets.
For firms which sponsor pension plans and incur pension obligations, pension plan assets and investment returns reduce those liabilities in the long term. In the short term, if the fund’s returns are projected to exceed the expected liability and associated costs, the company’s pension contribution can be reduced, which can boost earnings on the balance sheet. Assumptions should be reviewed against industry trends to monitor performance over time.
Integrated solutions enable organizations to budget for and capitalize on risk:
- Actuarial services
- Pension risk management
- Pension administration
- Delegated pension manager
- Retirement readiness
- Legal compliance and consulting
By leveraging the expertise of specialist teams and sophisticated tools, energy firms can translate complex data into actionable insights to build robust retirement plans.