With many corporate pension plans now overfunded, sponsors are exploring ways to monetize those excess assets.
Sponsors have waited over a decade for rates to rise and funded status to improve. Although both have now occurred, pushing most plans over 100% funded, many still carry elevated allocations to equities and other risk-seeking assets. Here is why de-risking is now not just beneficial, it’s mission critical.
Funding ratios rose again in 2022, putting plan sponsors in another surprisingly strong position. But with critical decisions looming, de-risking and diversification are paramount.