A funding policy for a pension plan is a systematic set of procedures used to determine the annual contributions to be made by the employer(s) in a specific year or series of years.
After reading this article, you will be positioned to lead the discussion of:
1) What is a funding policy?
2) What are the core elements of a funding policy?
3) Why is a funding policy important?
4) What steps are needed to develop a funding policy?
5) What events and timeframes should trigger a review of the existing funding policy?
6) What pension risks should be identified and monitored?