The Pension Research Council
Working Paper

Outsourcing Pension Longevity Protection

Igor Balevich
WP2009-21

Sign up or sign in to download

Abstract —

Steadily improving mortality rates are boosting pension liabilities, and plan managers are starting to evaluate ways to handle this exposure. We explore the impact of increasing longevity on pension plans and what can be done about it. Responses include plan design changes, transferring this risk to an insurance company, and development of strategies to hedge this risk without completely eliminating it.