The MetLife U.S. Pension Risk Behavior Index (PRBI) came in with an index value of 87 for the year, the highest value recorded since the study was introduced in 2009.
The index — conducted in conjunction with Bdellium Inc. and Greenwich Associates — seeks to take the temperature of corporate plan sponsors’ attitudes about the current pension environment.
The survey consists of interviews with senior financial professionals whose primary focus is pension investments, risk management and employee benefits. Large plan sponsors — 126 in total — were interviewed for the current study.
The index value represents the consistency between the importance plan sponsors place on the risks facing their defined benefit (DB) plans and how successful they are at controlling those risks. While MetLife feels it is unrealistic to arrive at value of 100, they have stated that a target of 87 is reasonable. This year, the target value has been hit.