TY - JOUR T1 - De-Risking in a Low-Interest-Rate Environment JF - Special Issues SP - 48 LP - 53 VL - 2015 IS - 1 AU - Rohit. Mathur AU - Scott D. Kaplan Y1 - 2015/09/21 UR - https://pm-research.com/content/2015/1/48.abstract N2 - The persistent low-interest-rate environment is proving detrimental to the funding levels of defined-benefit (DB) pension plans in the United States and around the world. In 2014, for example, plan sponsors experienced significant declines in pension funding status, primarily due to the decline in interest rates coupled with the adoption of new mortality tables, which offset equity market gains. More recently, funded status has improved because of a modest rise in interest rates and positive equity returns.Despite these secular headwinds, reasons to de-risk remain plentiful, and the recent increase in pension derisking activity is reflective of plan sponsors’ response to the current pension landscape. Today’s interest-rate environment also offers a unique opportunity for sponsors of underfunded plans, which this article discusses in detail, along with recent evidence showing that reducing pension risk increases financial flexibility and creates shareholder value. ER -