SEI urges prudent assumptions
US - New compliance requirements under Financial Accounting Standards No.87 (FAS 87) and funding rules will require pension fund plan sponsors to make prudent assumptions when selecting discount rates and expected return on asset (ROA) valuations, according to a study by asset manager SEI.
Jon Waite, chief actuary for SEI's Institutional Group, said: "The changes in spreads and in the shape of applicable yield curves require a close examination of the data and a clear process for selection of these assumptions.
"When combined with all of the other changes in pension rules, plan sponsors are in need of transparent and understandable guidance on these and other pension financial management issues."
Latest stories
Late Cycle Asset Allocation Views
Here are key takeaways from our 2019 Asset Allocation Outlook on how we are positioning asset allocation portfolios in light of our outlook for the global economy and markets.
Five stories you may have missed this week
This week's top stories included a Freedom of Information request revealing more than 100,000 savers could face six-figure tax bills as a result of GMP equalisation.
Pearson scheme completes £500m buy-in with L&G
The Pearson Pension Plan has entered into a £500m pensioner buy-in with Legal & General (L&G) in the insurer's first deal of 2019.
Most read
