Defined Benefit Pension Funds: A Finance Director’s Perspective
Document ID: 2004-828 (previously Report 74a)
Published on: 1st November 2004
Author: Andrew Barrie
In this note we look at the impact the DB pension plans will have on company accounts. We will develop a statistical model for the risks in P&L, Balance Sheet and Cashflow line items. We show how the pension fund line items relate to other accounting line items and investigate the appropriateness of different investment strategies for sponsoring companies. This framework can then be used to establish appropriate corporate or pension strategy solutions.
