By: Russ Kamp, Managing Director, Ryan ALM, Inc.

We are pleased to share with you the second installment in the Ryan ALM, Inc. Pension Myth series. How many we produce has yet to be determined, but we can tell you that there are enough myths to keep us busy for a while. This one is focused on the critical role that contributions play. Given that benefits and expenses are paid net of contributions, we believe that future contributions are an asset of the fund and should be included in the pension plan’s Funded Ratio.

We hope that you find our thoughts useful as they challenge the industry’s “common wisdom”. We’d welcome the opportunity to discuss these concepts with you. Please don’t hesitate to reach out.