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Article: News Just In... : Kandarian warns over DB funding rules.(Defined Benefit funding rules)(Steven Kandarian)(Brief Article)
- Article from:
- Pensions Week
- Article date:
- April 26, 2004
CopyrightCOPYRIGHT 2004 FT Business. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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The former head of the US scheme that the Pension Protection Fund (PPF) is to be modelled on has warned that defined benefit schemes need to be more conservatively funded if they are to safeguard their own future.
At a lecture to, among others, members of the Pensions Bill standing committee, Steven Kandarian, until recently the executive director of the US Pension Benefit Guaranty Corporation (PBGC), focused on its investment structure.
His concern is over a pension guarantee fund being structured too much like the funds it is designed to guarantee, with an emphasis on equities. In the good equity years, he explained, the PPF will not be required, and ...