Why in managing a defined benefit pension planis it necessary for the plan sponsor to pursue aliability-driven solution rather pursue a strategythat focuses only on management of the assets?
What will be an ideal response?
The passage of the Pension Protection Act of 2006 makes it imperative for the plan sponsor to pursue a liability-driven solution rather than pursue a strategy that focuses only on management of the asset. In particular, this act states that sponsors of DB pension plans must now mark to market their projected liabilities based on prescribed discount rates that were phased in in 2012.
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The ________ model is a popular model of decision making that requires information about how useful or important each attribute is to the customer making a brand choice and how customers perceive the brands in the evoked set in terms of their
attributes. A) attribution B) compensatory C) cluster D) multiattribute
The earnings on an deferred annuity are
A) subject to ordinary income taxes when earned. B) subject to capital gains taxes when earned. C) tax exempt. D) tax-deferred until they are distributed.