Defined benefit—Funding your plan and managing plan assets

Single-employer defined benefit funding reforms
The Pension Protection Act of 2006 changed the existing funding paradigm from a "long-term" perspective to a "solvency" perspective. The new funding rules require that plan sponsors contribute an amount each year sufficient to cover the benefits that are expected to accrue during the plan year plus an amount that would amortize or pay off the existing unfunded liability over a period of seven years.

Pension funding through liability-sensitive investments
Pension plans are facing greater uncertainty and decreased flexibility in managing the complex trade-off between restraining costs and minimizing funding volatility.

Pension reform, freezing plans: Will it mean a shift to fixed income?
Continued funding struggles, accounting issues, and the potential impact of impending pension reform may push DB plans to focus more on immunization approaches, which can include more fixed income investments.