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During 2006-2007, financial and economic conditions continued to create a challenging environment for private pension plans. Though funding pressures eased over the period, as a result of strong investment returns, stable long-term interest rates and the Solvency Funding Relief Regulations introduced by the federal government in November 2006, vigilance is still required. The perfect pension storm may have passed, but the low interest rate environment lingers and a significant number of defined benefit pension plans are expected to continue to face large funding demands. For some plan sponsors, the ability to meet these demands remains a concern.
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