New research from BlackRock, based on a global survey of 300 pension funds, explores both the winding down of corporate plans and the building up that public and other non-corporate funds are doing to strengthen themselves for the long run. The study found that only one in 10 corporate plans are open to new members, while nine in 10 non-corporate plans remain open to new participants. Nearly three-quarters of corporate plans say the are re-risking, but this measure rises above 90 percent for UK plans and above 80 percent for U.S. plans. Managing change requires heightened focus on governance and investment policy, and the survey points to significant activity in those areas. Commonalities include a broad push to implement investments more efficiently, bringing investment fees under great scrutiny and expecting to increase the already substantial use of passive investment strategies.

BlackRock: Common Challenges, Diverging Paths – Winding Down and Building Up in Global Defined Benefit Pensions