Defined benefit: Top priorities 2024
Getting ready for rapid change
Throughout 2023 we saw a fragile global economy, worrisome interest rates, inflation, climate risks and conflict occupying investors’ minds. As 2024 begins, one thing is clear: while these worries may someday ease, the good old days aren’t coming back.
Long-term trends like net zero commitments have combined with sudden shocks to force the global economy into a regime change.
Investors, plan sponsors, and employees will all feel the effects of the changes to come. In 2024, successful organizations will most likely be those who adapt quickly to change. By remaining agile, you can ensure your defined benefit (DB) plan is ready for potential changes to come, and deliver optimal outcomes for plan members - while reducing costs and other demands.
Read our whitepaper, Defined Benefit Top Priorities 2024: Getting ready for rapid change to discover:
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Are volatility and inflation here to stay?Interest rates may one day begin to fall – but how low will they fall? What will happen to pension plans’ funded positions? And should plans re-examine their investment strategies?
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What should my DB plan do with our surplus?Many DB plans remain in a strong funded position. Is it time to take some risk off the table? How should plan sponsors who have a surplus look to utilize it?
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Do my assumptions reflect the modern workforce?The generational composition of the modern workplace is shifting, and behaviours and expectations are shifting along with it.
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Am I ready for regulatory change?Canadian Association of Pension Supervisory Authorities (CAPSA) is due to release new guidelines imminently, addressing new areas like ESG and cybersecurity, and taking a deeper look at investment risk. With new regulations come new responsibilities. Is your plan ready to shoulder the burden?
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Is my DB plan agile enough to deal with an uncertain economic outlook?Wage growth expectations are high – elevating employee expectations – and employers with unionized workforces are seeing this play out in the collective bargaining process.