|Introduction to Pension Risk
First in a Series
|Risk is a fundamental feature of any defined benefit pension program, and managing risk is a significant challenge facing sponsors of multiemployer pension plans. Trustees need the ability to identify and measure risk in order to properly manage it. This requires an understanding of what the risks are, their impact, and their likelihood – as well as access to timely information to allow trustees to take action, when appropriate.
As a continuation and extension of the efforts by our multiemployer pension experts and consultants, Segal Consulting is assembling a central resource – available at segalco.com and through email subscription – that will supplement the information provided by our consultants.
Over the coming months, we will explore the risk continuum – from identifying risks, through quantifying them, to managing their impact on multiemployer pension plans – in a series of emails, publications, videos and demonstrations related to steps in the pension risk continuum.
Today we are highlighting a short excerpt from a presentation by Segal’s Multiemployer Retirement Practice Leader, David Dean, that details the types of risks employers and participants may face.