First few Article Sentences
Background
Defined benefit plans were designed to provide certainty and stability in the delivery of retirement income for workers. The impact of the Pension Protection Act along with the recent market melt-down have combined to place incredible pressures on the entire pension system. Many plans have gone from over-funded to under-funded status. Strategies and tactics long recommended and considered safe no longer seem to perform as advertised.
Mid-market pension plans face many challenges, among them: 1) Actuarial and investment professionals often don’t understand or fully appreciate the full impact of their counsel to clients; 2) Advisors and brokers may receive compensation that is inconsistent with best practices and good advice; and 3) Investment and administration vendors’ business models and financial interests may not be well-aligned with the best interests of their corporate customers.