US - The Pension Benefit Guaranty Corporation (PBGC) has retained SEI Investments to provide financial modelling and associated analysis designed to show the impact of pension finance on overall corporate finance.
According to SEI, the result will allow the PBGC to more accurately predict the impact of economic, market and policy changes on plan funding and plan sponsors’ financial status.
SEI said its financial modelling and analysis capabilities are key components of its integrated pension solution recently introduced in the US. The solution fully synthesises an organisation’s long-term pension strategy with its corporate financial goals, the firm added.
“The integration of pension planning with corporate finances has emerged as the foremost challenge in determining the future health of pension plans,” said Jim Morris, senior vice president, SEI Retirement Services.
“At SEI we are looking to evolve our offering from an investment outsource solution and intend to develop a broader proposition that looks at the wider issues relating to pension schemes within a company.”
Morris said the approach, in which SEI will work closely with CEO’s and finance directors as well as trustees to examine how the pension scheme fits with the company’s broader needs, is proving “hugely successful” in the US.
He added: “We are looking to develop a similar approach in the UK where corporate finance considerations are given greater weight in decisions relating to pension schemes.”
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