Asset Liability Management

Rob Bauer, Roy P. M. M. Hoevenaars and Tom Steenkamp

in The Oxford Handbook of Pensions and Retirement Income

Published in print July 2006 | ISBN: 9780199272464
Published online September 2009 | | DOI:

Series: Oxford Handbooks in Business and Management C

Asset Liability Management


Market valuation of assets is a topic that has been discussed for quite some time now, but the valuation of pension contracts including all embedded options is a major challenge for pension fund policy makers. On top of that, pension fund beneficiaries are increasingly demanding more transparency with regard to the exact nature of their pension arrangement, or their pension deal. This article sheds some light on the management of the current and future financial health of a defined-benefit public pension fund. Most funds conduct a so-called Asset Liability Management (ALM) study that investigates the impact of decisions with regard to investment, contribution, and indexation policy on the various stakeholders of the fund (employees, employers, and retired and future generations).

Keywords: asset liability; pension contracts; pension fund; defined benefit; pension deal; policy makers

Article.  9172 words. 

Subjects: Business and Management ; Accounting

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