DB Risk - An Introduction with Ali Tayyebi

DB Risk - An introduction with Ali Tayyebi


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With continuing economic uncertainty, market volatility, fluctuating interest rates plus increasing longevity, managing DB pension risk is a critical business issue. Mercer is well positioned to support clients with consulting advice and solutions that address all aspects of pension risk management.

What makes managing DB pension risk such a hot topic?

  • Corporations have committed billions of dollars in additional funding to secure faltering defined benefit pension plans
  • Volatility in equities markets means sponsors need to be proactive about implementing well-managed investment strategies
  • Falling corporate bond yields have put pressure on balance sheets and cash requirements
  • Changing funding rules in some markets may potentially affect the timeline for exiting frozen DB plans
  • Equity analysts’ and credit rating agencies’ views on pension liabilities have had a negative impact on some companies share price, credit rating, cost of capital and business sale value.
  • Increased fiduciary responsibility and complexity in managing and providing a retirement program for employees/retirees
  • Changing accounting standards and regulations have increased the transparency of pension risk and its potential impact on a business