Many plan sponsors have responded to the increased risks and affordability challenges of traditional defined-benefit pension plans by transitioning to cash balance plans. However, because cash balance plans base future benefits on a predefined crediting rate—which is often tied to long-term interest rates, such as a 30-year par yield—both their benefit amounts and their liability discount rate are sensitive to changes in interest rates.
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John Southall
John Southall is head of solutions research at LGIM. He leads the quantitative research and strategy team of the solutions group in London, working on a combination of financial modeling, investment strategy development, and thought leadership. He is also involved in bespoke strategy work for some of LGIM’s largest clients.
Andrew Carter
Andrew Carter is co-head of fixed income solutions at LGIM America. In this role, he is responsible for the oversight of the construction and day-to-day risk management of LGIMA’s customized fixed income solutions. He further serves as LGIMA’s client-facing technical expert for all things related to asset management.
Sabrina Ren
Sabrina Ren is a portfolio manager at LGIMA. In this role, she is responsible for the day-to-day risk management of customized investment solutions for LDI funds. Prior to joining LGIMA in 2021, Ren was an actuarial senior consultant in risk management at Nationwide Insurance, where she specialized in asset liability management and equity derivatives hedging for annuities and life insurance liabilities.
