Get Real-Time Stress Testing Results for Your Plan
What is Stress Testing?
A stress test estimates how well a system performs when it’s subjected to inordinate levels of stress or pressure. For pension and health and welfare plans, that means simulating a range of adverse conditions to gauge their impact on the long-term sustainability of the plans.
Do You Need to Stress Test Your Plan?
Stress testing is mandatory for financial service institutions, but not for benefit plans, even though the latter are akin to banks and insurance companies. What all the institutions have in common is uncertain and often volatile cash flows that can affect their financial condition. Several states have begun requiring stress testing of public pension plans.
How Does Cheiron’s Approach to Stress Testing Differ from Other Actuaries?
We have led the call for mandatory stress testing of defined benefit plans. Our consultants have performed stress testing for decades so we’re adept at asking the right questions and helping you interpret the results.