Is your company managing its pension risk using the same measures of financial risk that analysts and rating agencies are applying currently? If not, you could be constraining your company’s share price or harming its credit rating. Our Global Retirement Insights: Pension Funding and Financial Markets: Analysts' and Credit Rating Agencies' Views reviews four principles that inform most analysts’ and rating agencies’ analysis of corporate pension risk:

1. Pension deficits are comparable to corporate debt; 
   
   
2. Companies should fund pensions fully, by borrowing if necessary; 
   
   
3. Investing pension fund assets in bonds maximises shareholder value; and
   
   
4. financial disclosures should reflect the “true” cost of retirement provision.

We also suggest a framework for formulating and implementing retirement financial management policies appropriate to your company.

You can download a PDF complete of this 28-page report here.