Asset Liability Studies
Asset liability studies are a necessary component of defined benefit plans. Under a defined benefit plan, a commitment is made by the plan sponsor to fund retirement benefits for a pool of beneficiaries. In order to understand the funding liabilities of the plan sponsor, an asset liability study is conducted to determine the under funded portion of the plan (if any).
We typically conduct asset/liability studies in conjunction with a certified actuary or actuarial firm. With defined benefit plans, we develop asset allocation strategies that match disbursement projections for the plan. In addition, we conduct scenario modeling that takes a rolling view of liabilities and any under-funding issues.