Plan sponsors eager to take risk off the table

Overall, the research shows a division among plan sponsors on the benefits and costs of different de-risking approaches, a situation that may reflect a lack of understanding of what the options involve. The majority of the plans surveyed would consider liability-driven investment, with many of them suggesting annuities are more expensive. That’s not necessarily true, however. Zev Frishman, chief investment officer at Morneau Shepell Asset and Risk Management Ltd., says plan sponsors need to understand the trade-offs.

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