Assisting a plan sponsor with its investment portfolio using asset liability modeling By Zorast Wadia | 12 December 2018 The challenge A publically owned client in the financial services sector had just emerged from a divestiture from its parent company. The defined benefit pension plan’s investment allocation was entirely dedicated to fixed income instruments and cash given the need for portfolio stability during the divestiture. The plan sponsor asked Milliman to assist with the subsequent re-risking of the plan’s investment portfolio. While the pension plan was currently funded on an ERISA basis so that there was no minimum required contribution due, it was underfunded on an accounting basis and also subject to Pension Benefit Guaranty Corporation (PBGC) variable rate premiums as a resu

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