Cash-balance liabilities: A new investment framework
A cash-balance plan is very different from a traditional pension plan, and the differences can have a major impact on the interest-rate sensitivity of the plan’s liability. In this paper, we consider the implications of a cash-balance plan’s design and propose an investment framework focused on capital preservation, consistent income, and liquidity.
Continue reading
By
Amy Trainor, FSA
Louis Liu, CFA, ASA, MAAA
event
Article
2022-06-01