Funding Strategy:
Balancing Investment Risk with Plan
and Enterprise Cash Flows

Under PPA, plans have a 100 percent funding target, and benefit restrictions and reporting requirements are triggered if the funding percentage is below specific thresholds. You may wish to fund a pension plan to levels that avoid these various benefit and reporting requirements. Riskier investments can lead to higher investment returns, thereby accelerating progress to funding targets. But such investments may also result in lower returns, requiring you to make greater contributions to achieve PPA funding targets.