Intersection of Pensions and ERM

[Jeremy Gold]

http://www.frontiersinpensions.com/f...management.pdf

[Steve Grondin]

Jeremy,

Can you identify any large companies that have eliminated/hegded their equity exposure in DB plans in response to these arguments?

[Jeremy Gold]

Nope. I've attached a slide from my presentation of this at CCA last fall.

[Steve Grondin]

I'm afraid we'll see the demise of DB in the private sector before FE will take hold.

How do you think this translates to the public sector?

Here in AL, the "good" performance of equities in the retirement trust funds are used to justify pension increases (which are technically nongtd, but policitally speaking they are gtd). And yet the funded ratios are beginning to decline. Looks like a big train wreck to a simple life actuary.