2005 Symposium: The Evolution of Risk and Reward Sharing in Retirement

April 25-26, 2005

About the Conference

Retirement systems unavoidably balance a variety of economic and political risks, including capital market and mortality shocks, firm bankruptcy risks, funding changes, and policy shifts. These are in turn reapportioned among various stakeholders. This conference analyzed how recent changes in risk and reward patterns are being shared among the parties to private and public retirement systems. Discussion assessed how these risk sharing arrangements are evolving and should continue to change in the future.

The 2005 Symposium was a Wharton Impact Conference sponsored by the Wharton School’s Pension Research Council and Boettner Center for Pensions and Retirement Research.

Co-organized by David Blitzstein, Olivia S. Mitchell and Steve Utkus.

Conference Agenda

APRIL 25, 2005

Opening Remarks: Olivia Mitchell
Did Pensions Take a Wrong Turn? David Blitzstein, UFWC

Session I: Plan Sponsor Perspectives on Plan Risks and Rewards

  • “New Views of Defined Benefit Plans: Risks and Rewards for Plan Sponsors”
    P. Brett Hammond and Doug Fore, TIAA-CREF
    Download Presentation [PDF, 26K]
  • “The Influence of PBGC Insurance on Pension Fund Finances”
    Julia Coronado, Watson Wyatt, Nellie Liang, Federal Reserve Board of Governors

Session II: Controlling Plan Sponsor Risks and Rewards

  • “Changing Views of Pension Risk Management: New Actuarial Perspective”
    Emily Kessler, SOA
    Download Presentation [PDF, 76K]
  • “Optimal Investment Strategies for Hybrid Pension Plans – Analyzing the Perspective of Sponsors and Members”
    Peter Albrecht, Univ. of Mannheim; Raimond Maurer, Univ. of Frankfurt; Joachim Coche, European Central Bank; Ralph Rogalla, Univ. of Frankfurt

Session III: Employee Perspectives Regarding Risk and Reward

  • “Changing Pension Risks Confronting Participants”
    Phyllis Borzi, GW
    Download Presentation [PDF, 52K]
  • “Saving Adequacy in the DC Context”
    Sarah Holden, ICI and Jack Vanderhei, EBRI/Temple

Session IV: Strategies for Containing Retirement Risk

  • “Better Plans for the Better-Paid: Determinants and Effects of 401(k) Plan Design”
    Olivia Mitchell and Stella Yang, Wharton; Steve Utkus, Vanguard
    Download Presentation [PDF, 71K]
  • “New Investment Strategies for a Defined Contribution Pension Environment”
    Ronald Albahary, SEI Investments and Joseph Miskel, Merrill Lynch Retirement
    Download Presentation [PDF, 105K]
  • “Changing Dynamics and Risk Sharing in Employer-Provided Retiree Medical Benefits”
    Brian Fuller, George Wagoner, Frank Yeager, Mercer; Anna Rappaport, Independent Consultant
    Download Presentation [PDF, 591K]

Discussant: Lori Lucas, Hewitt Associates LLC
Download Presentation [PDF, 36K]

APRIL 26, 2005

Session V: Pension Risks and Rewards: Public Sector Perspectives

  • “Who Bears What Risk? An Intergenerational Perspective”
    Henning Bohn, University of California Santa Barbara
    Download Presentation [PDF, 64K]
  • “The UK Approach to Insuring Defined Benefit Plans”
    Anthony Neuberger, Warwick Business School, and David McCarthy, Imperial College
  • “Avoiding Transition Costs in Reforms to Social Security”
    Salvador Valdés-Prieto, Universidad Católica de Chile
  • “A Modern Approach to Single Employer Defined Benefit Pension Regulation: Motivations for the Administration’s Pension Reform Proposal”
    Neal McCall, Mark Warshawsky, and John D. Worth, Department of the Treasury

Discussant: Kent Smetters, Wharton

Session VI: Roundtable

Mary Nell Billings, Federal Express; Daniel Madden, Illinios Tool Works; James F. Moore, PIMCO

Closing Remarks: Olivia Mitchell