Rush University Medical Center has adopted the real-time pensions risk analytics and reporting platform, PFaroe, to help measure and manage investment risk in its pension plans. Using the same cutting-edge system to view and analyze data as its investment consultant, NEPC, should improve consistency and efficiency of approach, allowing for more timely and enhanced collaboration when assessing optimal asset-liability management (ALM) studies and reviewing strategic asset allocation decisions.
Rush University Medical Center operates two primary pension plans – an open cash balance plan for current employees and a frozen plan for former vested employees. The plans manage assets in total of near US$1 billion and there are over seven thousand active participants in the cash balance plan.
Alex Wiggins, Associate Vice President, Treasury, Rush University Medical Center, comments: “Having direct access to PFaroe in-house allows us to gain enhanced visibility over our plans and share the same perspective as our consultant, greatly improving our monitoring capabilities and our understanding of plan risk. Previously, Rush and NEPC were operating separate models and spending time reconciling numbers; now our data sets and analysis are in sync and available on-demand, which drives efficiency and a more aligned approach to risk management.”
Paul Kenney, Partner at NEPC, adds: “Having that common tool allows us to work far more closely with Rush on analysis, evaluation and strategy; strengthening our partnership and allowing us to focus on what matters – making important, informed decisions on how to move the portfolio.”
Matthew Seymour, CEO, RiskFirst, says: “PFaroe is used by many plans directly in the UK and it is fantastic to see this increasing in the US now. Even more pleasing is seeing the benefits modern technology is bringing to pensions risk management, allowing seamless collaboration between organisations via the web. Rush University Medical Center and NEPC are together harnessing PFaroe as a “hub” through which both parties can see consistent information relevant to them, driving more efficient dialogue and better results.”