Defined Benefit

Solutions for Your Defined Benefit Needs
Ellwood assists fund fiduciaries in structuring sound investment programs for their retirement plans. Our proactive pension plan design meets the challenges of defined benefit plans including pension reform (PPA) and accounting changes.

Holistic views of your pension plan
It is important to understand both sides of the pension balance sheet. High potential return investment strategies may minimize the cost of funding a pension plan. However, these strategies often result in a mismatch between pension assets and liabilities. This triggers short-term accounting and funding issues.

Our approach is to adopt an asset and liability framework in managing your assets. This structure provides stability and long-term growth.

Coordination to bring your vendors together
Ellwood coordinates the key service providers to ensure all aspects are considered and evaluated. We partner with plan actuaries to incorporate the key circumstances and needs into the development of long-term investment strategies.

When assessing a plan, we consider:

  • Participant demographic trends to understand how the plan may age and an appropriate investment time horizon.
  • Plan liquidity needs over time to develop an appropriate investment policy.
  • Segmentation of plan liability into different duration cells to understand the impact of fluctuating interest rates on the present value.

Our goal is to help you reach a balance between maximizing returns to reduce plan funding and minimizing capital market risk and interest rate risk to avoid funded status deterioration.

Want general information about Ellwood? Contact us today.