arrow pointing away from road going over cliff Participant longevity is increasing the riskfaced by DB plans. (Photo: Shutterstock)

Limiting risk, compared with eliminating it altogether, is aconsideration for employers seeking to manage the risks of definedbenefit plans, and a new white paper from Massachusetts Mutual LifeInsurance Company.explores the pros and cons of a range ofstrategies.

The paper "Key decisions for de-risking your pension plan"looks at multiple strategies:

  • freezing plans to new entrants
  • hibernating plans
  • reallocating investment assets
  • shifting pension obligations to a life insurer as part of apension risk transfer

That last is emerging as the choice of an increasing number ofemployers, according to Neil Drzewiecki, head of pension risktransfer for MassMutual.

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Marlene Satter

Marlene Y. Satter has worked in and written about the financial industry for decades.