Get Real-Time Stress Testing Answers
For Your Public Pension Plan
P-Scan, our interactive pension projection modeling tool, helps you conduct stress tests and make informed decisions by:
- Customizing the model to the objectives of your plan
- Illustrating in real time the contribution rates and funded status under various economic scenarios
- Developing policies to control financial risks
- Evaluating different funding policies
- Assessing the financial implications of proposed changes
- Demonstrating the impact of possible economic shocks on the plan
Assets and Liabilities
This is a sample P-Scan projection of the assets and liabilities of a public sector pension plan. The deterministic projection allows trustees to estimate a plan’s funded status under different scenarios by changing variables such as the expected investment returns and discount rates. This projection shows a plan that was 53% funded in 2018 and is projected to be almost fully funded by the end of the 20-year period if it meets all the assumptions.
This graph shows the projection of the plan’s contributions—both the city’s and member’s contribution rates as a percentage of pay; the normal cost or the cost of providing an additional year of benefit accruals; and the tread water rate or the minimum contribution needed to maintain the current funded status.