U-Shaped Glidepath Strategy for Pension Overfunding

This research article explores the advantages of a U-shaped glidepath strategy for defined benefit pension plans with surplus funding. It highlights how such a strategy can enhance returns while protecting against shortfalls, and discusses viable uses for surplus assets without terminating the plan. The findings suggest a reassessment of glide path designs for sponsors in surplus positions, aiming to maximize benefits for both fiduciaries and participants.