Ignoring the Bright Lights: Going Beyond the Funded Ratio
When examining pension plans, many stakeholders and the media tend to zero in on one particular number: the funded ratio. However, the funded ratio tends to oversimplify pension plans, leaving out important details about their health, funding, and trajectories over time.
Attend this session to hear a discussion on funding levels of retirement plans, related public perception, and what is truly important about achieving funding goals and plan affordability over time.
Learning Objectives
Define the funded ratio.
Explain the shortcomings of the funded ratio as an indicator of a pension plan's health.
Discuss alternative approaches to conversations about long-term pension plan funding goals and plan affordability.