December 1996 NewsLetter, "The Importance of Strategic Planning for Multiemployer Pension Plans"
Trustees of multiemployer pensions face pressure that are likely to increase in the new millennium, not the least of which is ensuring adequate funding to cover the needs of current and future retirees. This NewsLetter describes some strategic planning issues that trustees can examine to help determine the fund's long-term ability to provide benefits: cash-flow issues, the ratio of active to retired participants, benefit adequacy for future retirees, actuarial issues and plan design. The starting point for a strategic planning review is the annual actuarial valuation. The strategic planning review requires an objective and systematic look at the fund's recent history, the factors that have affected the plan to date and the effect that emerging trends will have on the fund in the future. Actuarial issues are briefly noted in a sidebar.