"[The authors] quantify both the costs and the corresponding risk reduction of two de-risking strategies that can potentially be implemented plan-wide: LDI hibernation and annuity buyouts. Specifically, [they] focus on how these strategies affect the expected size, volatility, and timing of sponsor contributions. Why contributions? Because eventually, the impact of both hibernation (internally implemented) and buyouts (externally implemented) will flow through the sponsor's check-book. Hence the contribution perspective provides a way to compare de-risking strategies from a common vantage point."  MORE >>