Pension plan de-risking – is now the wrong time?
February 01, 2011
By Peter Muldowney
Many defined benefit (DB) plan sponsors have indicated a desire to de-risk their DB plans. However, a key barrier to de-risking is a “regret risk” that they won’t benefit from a rise in interest rates. In a rising interest rate environment, liabilities will decline, and if there’s not the same level of decline in the plan assets, it will improve the financial position of the DB plan.
