Posts by Mike Paolucci

Pensions are retirement plans that are offered to individuals by private employers or government entities. These defined benefit plans invest in funds on behalf of individual account holders for guaranteed payment (in lump-sum or in payment streams) at retirement. The plans originated as early as 1875 with the first plan offered by the American Express…

The persistent decline in interest rates has presented challenges for pension plan sponsors, especially those with a funding deficit. The most obvious challenge is the upward pressure on liabilities. The other is the difficulty of managing the asset portfolio with continuing expectations of lower market returns. In the absence of fixed-income investments that offer attractive…