Defined Benefit (db) Plan Funding & Risk Transfer Strategies: Secure Db Plan Funding

Introduction:

Defined Benefit (DB) Plan Funding and Risk Transfer Strategies equips professionals with the knowledge to manage DB plan liabilities and funding risks. This course focuses on exploring diverse funding options, implementing effective risk transfer techniques, and optimizing plan solvency. Participants will learn to analyze liability structures, evaluate investment strategies, and navigate the complexities of DB plan management. By mastering DB plan funding and risk transfer, professionals can enhance plan stability and ensure long-term benefit security.

Target Audience:

This course is designed for professionals involved in defined benefit plan management, actuarial analysis, and financial risk management. This includes Actuaries, Pension Fund Managers, Risk Managers, Investment Analysts, Financial Analysts, Trustees, Consultants, Compliance Officers, HR Managers, and Employee Benefits Attorneys. These individuals require expertise in DB plan funding and risk transfer to effectively manage plan liabilities and funding risks.

Course Objectives:

• Understand the fundamentals of DB plan funding and liability management.
• Analyze various DB plan funding strategies and their implications.
• Evaluate risk transfer options for DB plans (buy-outs, buy-ins, longevity swaps).
• Understand the role of asset-liability management (ALM) in DB plan funding.
• Implement techniques for modeling and measuring DB plan liabilities.
• Analyze the impact of interest rate and longevity risks on DB plan funding.
• Understand the regulatory and compliance aspects of DB plan funding and risk transfer.
• Develop strategies for optimizing DB plan investment strategies.
• Implement techniques for stress testing and scenario analysis of DB plan funding.
• Develop effective communication strategies for reporting DB plan funding and risk transfer.

DURATION

10 Days

COURSE CONTENT

Module 1: Introduction to Defined Benefit (DB) Plan Funding

• Overview of DB plans and their funding challenges.
• Understanding the key components of DB plan liabilities and assets.
• Introduction to the principles of DB plan funding and risk management.
• Setting the stage for exploring funding and risk transfer strategies.

Module 2: Fundamentals of DB Plan Funding and Liability Management

• Analyzing the key drivers of DB plan liabilities (demographics, benefits, interest rates).
• Understanding the role of actuarial assumptions and valuations.
• Examining the impact of funding regulations and accounting standards.
• Developing a foundational understanding of DB plan funding.

Module 3: DB Plan Funding Strategies and Implications

• Analyzing various DB plan funding strategies (open vs. closed plans, contribution policies).
• Understanding the impact of funding policies on plan solvency and sponsor costs.
• Examining the role of funding ratios and deficit recovery plans.
• Developing strategies for optimizing DB plan funding policies.

Module 4: Risk Transfer Options for DB Plans

• Evaluating risk transfer options for DB plans (buy-outs, buy-ins, longevity swaps).
• Understanding the benefits and limitations of different risk transfer mechanisms.
• Analyzing the impact of risk transfer on plan liabilities and sponsor obligations.
• Developing strategies for selecting and implementing risk transfer solutions.

Module 5: Asset-Liability Management (ALM) in DB Plan Funding

• Understanding the role of ALM in DB plan funding and risk management.
• Analyzing the impact of asset allocation and liability matching.
• Examining the use of derivatives and hedging strategies.
• Developing strategies for implementing effective ALM techniques.

Module 6: Modeling and Measuring DB Plan Liabilities

• Implementing techniques for modeling and measuring DB plan liabilities.
• Understanding the role of actuarial models and projections.
• Analyzing the impact of demographic and economic assumptions.
• Developing methodologies for quantifying and modeling liabilities.

Module 7: Impact of Interest Rate and Longevity Risks

• Analyzing the impact of interest rate and longevity risks on DB plan funding.
• Understanding the role of duration matching and yield curve analysis.
• Examining the impact of longevity swaps and longevity bonds.
• Developing strategies for managing interest rate and longevity risks.

Module 8: Regulatory and Compliance Aspects of DB Plan Funding and Risk Transfer

• Understanding the regulatory and compliance aspects of DB plan funding and risk transfer.
• Analyzing the role of regulatory guidelines and reporting requirements.
• Examining the impact of accounting standards and disclosure obligations.
• Developing strategies for ensuring regulatory compliance.

Module 9: Optimizing DB Plan Investment Strategies

• Implementing strategies for optimizing DB plan investment strategies.
• Understanding the role of strategic asset allocation and diversification.
• Analyzing the impact of alternative investments and illiquid assets.
• Developing techniques for enhancing investment performance.

Module 10: Stress Testing and Scenario Analysis of DB Plan Funding

• Implementing techniques for stress testing and scenario analysis of DB plan funding.
• Understanding the role of historical and hypothetical stress scenarios.
• Analyzing the impact of extreme market events and economic shocks.
• Developing methodologies for assessing funding resilience.

Module 11: Communication Strategies for Reporting DB Plan Funding and Risk Transfer

• Developing effective communication strategies for reporting DB plan funding and risk transfer.
• Understanding the role of risk reporting and disclosure.
• Analyzing the impact of communication on stakeholder perceptions.
• Developing strategies for transparent and timely reporting.

Module 12: Liability-Driven Investing (LDI) and Cash Flow Matching

• Understanding the role of liability-driven investing (LDI) and cash flow matching.
• Analyzing the benefits and limitations of LDI strategies.
• Examining the impact of cash flow matching on plan solvency.
• Developing strategies for implementing effective LDI.

Module 13: Plan Terminations and Settlements

• Understanding the process of DB plan terminations and settlements.
• Analyzing the impact of plan freezes and wind-ups.
• Examining the role of regulatory approvals and participant notifications.
• Developing strategies for managing plan terminations.

Module 14: Case Studies and Best Practices in DB Plan Funding

• Analyzing real-world case studies of successful DB plan funding and risk transfer strategies.
• Learning from best practices across different industries and plan sizes.
• Identifying key lessons learned and challenges in implementation.
• Discussing the role of innovation and adaptation.

Module 15: Future Trends and Action Planning for DB Plans

• Exploring emerging trends and opportunities in DB plan funding and risk management (consolidation, longevity risk solutions, ESG integration).
• Developing action plans for advancing DB plan strategies within organizations.
• Analyzing the role of individual and collective action.
• Understanding the importance of long-term commitment and continuous learning.

Training Approach

This course will be delivered by our skilled trainers who have vast knowledge and experience as expert professionals in the fields. The course is taught in English and through a mix of theory, practical activities, group discussion and case studies. Course manuals and additional training materials will be provided to the participants upon completion of the training.

Tailor-Made Course

This course can also be tailor-made to meet organization requirement. For further inquiries, please contact us on: Email: info@skillsforafrica.org, training@skillsforafrica.org  Tel: +254 702 249 449

Training Venue

The training will be held at our Skills for Africa Training Institute Training Centre. We also offer training for a group at requested location all over the world. The course fee covers the course tuition, training materials, two break refreshments, and buffet lunch.

Visa application, travel expenses, airport transfers, dinners, accommodation, insurance, and other personal expenses are catered by the participant

Certification

Participants will be issued with Skills for Africa Training Institute certificate upon completion of this course.

Airport Pickup and Accommodation

Airport pickup and accommodation is arranged upon request. For booking contact our Training Coordinator through Email: info@skillsforafrica.org, training@skillsforafrica.org  Tel: +254 702 249 449

Terms of Payment: Unless otherwise agreed between the two parties’ payment of the course fee should be done 5 working days before commencement of the training.