A balancing act (TT JanFeb07 p20-22)

The pension risk that companies run can often be many times bigger than the foreign exchange and interest rate risks that treasurers have been managing in a systematic way for years. Treasurers need to manage this pension risk in a similar way. However, as ultimate decision making regarding pension investment lies with trustees, treasurers need to balance the needs of the company sponsor with those of the trustees.