Top 10 Priorities for Pension Plan Sponsors

The top 10 priorities are as follows:

1. Controlling funded status volatility;
2. Providing senior management with long-term pension strategies;
3. Improving plan's funded status;
4. Conducting an asset-liability study;
5. Effectively managing duration moving forward;
6. Implementing a Liability-Driven Investing (LDI) approach using long-duration bonds;
7. Defining fiduciary responsibilities for trustees and investment consultants;
8. Changing funding policies and timelines;
9. Stress-testing the portfolio to gauge its ability to withstand extreme macroeconomic environments;
10. Implementing a plan design change, such as closing the plan to new entrants or freezing accruals in already closed plans.

Defining fiduciary responsibilities for trustees and investment consultants moved up two spots from last year, with nearly two-thirds (64%) of participants listing it as a priority. Although ranking seventh, SEI says the move is notable, as it suggests that the Department of Labor's proposed regulations (which will likely include those providing investment advice to a defined benefit plan) are weighing on the minds of plan sponsors.