In 1979, just 7% of the private-sector workforce had a defined contribution plan while 28% had a traditional defined benefit pension plan according to the Employee Benefit Research Institute. In three decades, in 2011, the numbers had flipped: some 31% of American private-sector workers had a defined contribution plan, and 3% had a traditional pension plan. That is being said, traditional corporate pension plans are certainly not disappearing en masse. A significant numbers of corporations took a middle-of-the-road approach, maintaining their plans for people already on staff but not letting new hires join. Today, large pension plans hold more than $7 trillion of assets and still have a significant funding gap. Plan sponsors of these large corporate pension funds are continuously seeking for a panacea that will narrow the long term liability gap. Some have tried investing in a pig farm to national infrastructure to narrow the gap.
We, at BeamaLife, have developed the “GALIP” based, non-exotic fixed income strategy that will assist pension plan sponsors to narrow the gap by matching the duration and risk framework causing a significant and predictable reduction in long-term liability gap. Please call (800) 554-7822 or complete the short form for more information.