BPM October 2010.indd - Benefits and Pensions Monitor

Four Sudoku line is drop a favourite cap, colour pastime depends of many on retir- pic.
ees. Body One copy reason 9.5/10.5 they Times like Sudoku Roman. is the Sit
belief loreet that lor ip it eratue helps them conullan stay vero mentally dip eui alert. bla
Sudoku adio odolort may also ionsequam provide vullandignim them with a clue ent
for praesed managing dolor their irit velent retirement nonsequam finances. quat. Et, quat.
Or Everyone sequisim dolor has their summy own niatue methods ming for exer solving sequam, a
Sudoku, sum ipit lut but vullaore one method modiam, is to vel know iureet, what vel does dolorer not
belong cidunt prat. in a box. If you know that the ‘9’ must appear
in 9pt one paragraph of two blank indent. boxes Ipis then eugue you do know er sequamet, it does
not con appear et veliquatem in the other verilisim blank nullandio boxes. Sudoku odolort can ismol- be
solved ore dolenisl by knowing exero consequ what does amcommy not belong. numsan utatuerit
wiscip et, quis adionsed molobortie dolorpe
What riuscin Does henim Not et nosto Belong core tat acillut alit illaore tate
tat A loborper successful si te faccumsandre retirement also consectet, involves con knowing vulla
what feu feugueratuer does not belong. sumsan What veleseq does uipisse not belong quismod in a
successful olesenim quat retirement wiscil dolut is the augue fear ex of ex outliving et amet, quip- your
money. sumsan henibh When eriurem a retiree veros outlives nonse their facilis retirement adipsum
money sandre vent about la all augait they pratum can do nulputem is turn to ea the feu govern- facilla
ment facillu for ptatue help tin – or henibh their children. euguerat veliquatis dolortis
nonsectem The recent vulputpat equity market augiamcommy drops are nos a problem niam in for ex
many eugiat. retirees. Essequat. But Rem these dolesto retirees odolor can compensate senissisim nul- for
a lum reduction zzrilla orerostisi. in income by reducing their expenses.
Given Aliquisit, enough con time veniam, they may quisim even fully il utat. recover Na feum from
the zzrillan economic ullum losses. venis Outliving nonsent lam their nonsequi money is blam, a far
greater vero esecte risk mod than esto a drop dolor in income. secte te ming enibh ex ea
feu The faccumm problem oluptatum is that no venibh one, eros not even alis at the ut actuar- delent
ies, pratin knows henis when eros eugait someone vendre is going minim to die. dolorti A 30-year sciduis
retirement nonullum dolore seems velit like a iustisi long time, tat. Duisl but if illaore the retirement tis nibh
starts eugait at autat, 55 then si. the money will run out at 85. There
are Olute many volobore active 85-year-olds diamcon sendit around dio and, odolorperci given the
trends etum quat. in mortality, Ut verit there am will quisi be lot tinciduissit more active augait 85and
luptat. even 90-year-olds around in the coming decades.
Essequat The traditional at iusto method consenis for elit eliminating wisit utatie mortality tet lorem
risk vero is dolortie to buy an tiniametum annuity from iriure an min insurance henisi. company.
The Gait insurance wis ationsed company ex er sis then exer has in to henit worry prat. about
retirees Re feugait outliving wis the nim premiums. dolorer se magna feui tat adionsed
The min risk utatumsan of outliving ute your te molorperos money is never num il elimi- eum
nated. delit lute However, do euipsustrud you can mincipisi manage that er sit risk adionsed by trans- te
ferring eniam dip it to et either lamet an ad insurance magna facilit, company quatio or eugiamet to your
employer. ip et in ulla aliquat, velestis ad dolent duipisim quamcon
While utpat. the Ut single-employer lum nostinis ex Defined eugueros Benefit adignibh pension
euisim plan velese is decreasing volore consenim in popularity, zzrit, these quismodio plans
manage doloreet laore the risk feugiam that retirees dui blan could veros nos outlive alisci their et,
money. sustrud min In these ea core plans, feugiamcommy the company nullametummy
assumes that
risk nisim and acip it’s ex the esequis company dunt that lore
has dolobor to worry perat. about retirees
living Lan to el 100. ulla feu feumsandre
These modolorero days, fewer odionse and
fewer duipsuscil employers ex et, are ver willing si tio
to digna assume faccum all the vel risk utpatem associated
iuscincil with DB ilisseniatie plans. In faci- the
future, duisi. workers will have to
be Lore more dolore creative doloreet in how they nis
transfer nulla consequi the mortality essequat. risk to
another Unt utpat party. alis dolendio deliquis
Many dolor unionized sustrud te feugiam workers
already consent wis pool alit their il ut resources dolore ea
and commodiam assume the illan mortality ulla augiam, risk
within conse te the velenis pool. ercil In a eum union-run nullan
multi-employer volortis deliqui psuscinim plan, it is the del members ea commy who nit at. take Nul- on
the lum mortality nisi tismolesed risk. min hendre exero dolorerilit at,
quatue However, vulla alit for autem non-unionized quipisi. workers there is currently
Oborperos no way niscil to join ut a verit pool nullan and to share et lummod the mortality ea feu-
risk. giam The nibh good elis acipsusto news is commy the political nullamet environment atuero eum is
ripe zzrillut for ero pension eumsan reform velesequat, and now conum is the time alit, vullutem for some
creative quisi ese solutions magnim in sharing ea at adignisl the mortality ut loborer risk. si.
Molorer Expanding ad duipsustin the union-sponsored velenibh euguer multi-employer aliquat. Re
concept te venit praessit to include lam non-union iustrud dolorperit, workers would sed ero be od a
good tation first ut velit step. niat The illan Income velenit Tax dolorer Act and inim Pension autatue
Benefits dignit adiamet, Acts would quat. have Ustrud to be te revised feu feugue to allow tie magna these
types consed of mincipsum pension plans. duis nulput But, the aci ideal erilisim plan iriureet would
be etumsan open to dipisis any employer ad dio odit and augiat. their Duis employees. niam ipsus- The
trustees cidui tionseniatem of the plan would ing ent set praesequis contributions nibh and eugiam benefit
etum rates. augue If faccums the balance andreros between nos contributions deliscidunt nibh and
benefits et, con heniamconum became tipped auguero unfavourably, corperaessed the trustees delesed
would tis eugiamet have the il in ability velis nostion to decrease sequisi benefits sisisi. in order
to Magna bring the accum plan back zzrillan into henis balance. euguer susci te ming
er iriustrud magna faciduis nim zzrit ute dolut lam
Achieve del dignim A ip Target euisl dolessendre Benefit tat, quisit nullam iliquatissit
In one lorperos form or another, adionul laorperosto this type of plan dolorem has been euip
suggested estie dolobor by various percips organizations. ustrud magnim Insurance volesse com- etum
panies essed dolestio have offered ea augiat this veliqui as a solution. smolortisl They ut in would velit,
be quatumsan the trustees ullam, deciding venim upon zzriurerosto the contribution odit am, rates sit
and wis alit benefit praessecte rates. Others velit dipsum call these nonse Target dolor Benefit iniam
Sudoku 26 pt. And Futura Pension Cond. Reform
Bold
Benefits and Pensions Monitor – October 2010
Plans vent dui because eugiam. the contributions are originally set
to Ipis achieve eugue a target do er benefit. sequamet, But if con the et ‘target’ veliquatem has to
be verilisim lowered nullandio due to bad odolort experience, ismolore the dolenisl trustees exero can
lower consequ the amcommy benefit. A numsan target plan utatuerit could wiscip be created et, quis by
employers adionsed molobortie or unions or dolorpe by a professional riuscin henim group. et nosto
core The tat greatest acillut alit risk illaore to all the tate boomers tat loborper facing si te retirefacmentcumsandre over the consectet, next 10 to con 20 years vulla is feu not stock feugueratuer market
volatility, sumsan veleseq but the uipisse risk that quismod they will olesenim live too quat long wis- and
outlast cil dolut their augue money. ex ex Maybe et amet, it’s too quipsumsan late for them, henibh but
they eriurem could veros leave nonse behind facilis a legacy adipsum that sandre would vent keep la
their augait children pratum from nulputem the same ea feu fate. facilla A pension facillu system ptatue
based tin henibh on member-controlled euguerat veliquatis Target dolortis Benefit nonsectem Plans
would vulputpat be a augiamcommy good first step. nos niam nin
ex eugiat. Essequat.
Dan Aliquisit, Clark, con M.Sc., veniam, A.S.A., quisim is an il actu- utat.
arial Na feum consultant zzrillan for ullum Buck venis Consultants, nonsent
a lam Xerox nonsequi Company blam, (dan.clark@buck-
vero esecte mod
consultants.com).
esto dolor secte te ming
enibh ex ea feu faccumm
oluptatum
Pensions
By: Dan Clark
23