ERM-327-17: Pension Funding Strategy


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Reading Source: http://www.aon.com/attachments/human-capital-consulting/pension-funding-strategy-whitepaper.pdf?elqTrackId=2525F6ADEC890253FAA07BD5C61C9ECF&elqaid=4271&elqat=2

Topics Covered in this Reading:

  • Executive Summary
  • Introduction
  • Recent Trends
  • Implications of Maintaining an Underfunded Plan
    • PBGC Premiums
    • Plan De-Risking
  • Economics of Prefunding vs. Minimum Contributions
    • Pension Plan Perspective
  • Sources of Funding
    • Existing Cash
    • Borrow to Fund
    • Contribute Equity
    • Contribute Real Assets
  • Corporate Balance Sheet Perspective
    • Fund with Existing Corporate Assets
    • Borrow-to-Fund Strategies
  • Conclusion