TY - JOUR T1 - First Steps in Longevity Risk Management JF - Special Issues SP - 10 LP - 16 VL - 2014 IS - 1 AU - Guy Coughlan Y1 - 2014/09/21 UR - https://pm-research.com/content/2014/1/10.abstract N2 - Defined benefit (DB) pension plans should evaluate their sensitivity to longevity risk in order to quantify its impact and facilitate more effective plan-management strategies. While this might seem daunting at first glance, doing so is easier than is commonly thought. We advocate the use of a particular measure of longevity sensitivity called q-duration, which measures the sensitivity of the value of the pension liabilities to changing mortality rates. The q-duration of a pension plan can be calculated easily by plan actuaries. As part of this process, we recommend a mortality mark-to-market, to ensure that plan mortality tables are aligned with the demographic profile of beneficiaries and up-to-date relative to currently observed mortality rates. ER -