Pension Risk Management
Managing risk is an ever-present concern among corporate pension plan sponsors. At Aon, our goal is to help lower risk to avoid future deficits. We collaborate with sponsors to determine objectives, develop asset/liability management strategies and put important control levers in place. Our solutions cover pension risk transfer, lump sum distributions, plan termination and liability driven investing.
Key Reasons to Manage Pension Risk
Pension risk poses challenges to plan sponsors, and our consultants have the expertise to solve them:
- Pension plans distract senior management from their core business responsibilities
- Investors are more aware of pension risk, impacting stock prices and credit ratings
- Organizations that decrease the size and risk of their plans gain a competitive advantage
Pension Risk Transfer Strategies
Aon consultants offer numerous ways to manage or transfer the liability risk of a DB plan – plan design, investing, lump sum payments, annuity purchase, and plan termination. Here’s how they fit into your risk overall risk management strategy:
Aon Pension Risk Consultants Get Results
Compare our depth of analytics and expertise in asset/liability management to the typical Asset Liability Management approach. These comprehensive, proactive strategies deliver actionable outcomes to our clients.
| Typical ALM | Aon's Pension Risk Analysis |
|
|---|---|---|
Analytics
|
✔ | ✔ |
Dynamic Investment Policy Development
|
✔ | ✔ |
| Incorporation of Funding Strategy, Plan Design, Actuarial Methods | ✔ | |
| Implementation Considerations | ✔ | |
| Execution Capabilities and Experience | ✔ |
Note: Are you looking for assistance with your personal 401(k) or pension plan? If so, visit our help page.
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