Overview
Your Current Policies
Long term implications
- What are future costs expected to be?
- What is the expected volatility of funded status?
- Do other strategies improve the outlook?
Risks
- What are the chances that funding levels could dip below 80%? Below 60%?
- What are the chances that employer contributions could exceed 15% of payroll? 25% of payroll?
Financial statement view
- Look at one plan or aggregate all plans (e.g., pension + retiree medical)
What If You Change…
Actuarial policy
- What is the expected impact of a lower discount rate?
Contribution policy
- What is the worst case outcome for a new policy that would fund the plan faster?
Benefits policy
- How much will employer contributions decline if plan institutes a new tier of benefits with higher employee contributions and lower COLAs?
Investment policy
- How much can a dynamic glide path investment policy reduce the volatility of funded status?
The Result
Compare policies
- See effect of policies side by side
- Identify specific policies which best fit goals and objectives
- Develop and evaluate new scenarios using custom definitions of risk and reward
Share, inform, act
- Run forecasts in a meeting setting
- Display results in a clear and simple format
- Share the analysis easily with others, including Excel export
- Get advance warning to limit risk and produce better future cost outcomes
- Make informed decisions
