As pension plans increasingly drive the plan sponsor’s financials, Wall Street is paying more attention to pension plan management. As Wall Street analysts assess the financial risks embedded in corporations’ pension plans, it is important for corporations to benchmark their plans’ pension risk to that of their peers. Plan sponsors need to understand how their pension risk impacts the overall company financials.
Aon Investment Consulting’s Pension Risk Benchmark (PRB) provides an overall picture of pension affordability and vulnerability relative to the competition, with the ability to dissect the key score drivers:
- Size of plan relative to company size
- Level of risky assets held by the plan
- Maturity of plan demographics