Dec 11, 2008
What suggestions do you have for defined benefit plans as equities have lost 40% to 60% of value, year-to-date, with interest rates at historical lows, and liabilities that are growing.

EFF/KRF: Sorry, but there is no magic bullet here. Market events of the last few months underscore the risks of defined benefit plans to plan sponsors. As a result, we expect that DB plans will be even less popular among plan sponsors in the future.

Eugene F. Fama
The Robert R. McCormick Distinguished Service Professor of Finance at the University of Chicago Booth School of Business
Kenneth R. French
The Roth Family Distinguished Professor of Finance at the Tuck School of Business at Dartmouth College
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Eugene Fama and Ken French are members of the Board of Directors of the general partner of, and provide consulting services to Dimensional Fund Advisors LP.