Unformatted text preview: years of service
Graded vesting: 20% after 3 years, then 20% each additional year until
Pension formulas vary; (base % + add-ons * years) * MAX salary All Rights Reserved Dr David P Echevarria 7 PENSION FUND MANAGEMENT
A. Insured Vs. Trust Portfolios
1. Insured; insurance annuity plans with guaranteed returns
2. Trust; the atypical stock investment plan via mutual fund
portfolios B. Insured funds sensitive to interest rate risk, trust
portfolios to acumen of fund managers and the
vagaries of the market
1. Risk management is essential
2. Stock funds manage risk by selecting sectors or particular
3. May also use derivatives to...
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This document was uploaded on 02/11/2014.
- Fall '09