With a primary focus on all aspects of risk management, the Board has been following a strategy of holding on to recent gains and being prepared for any unexpected adverse events. This has meant lowering the discount rate and using margin strategically, to ensure a funding cushion is available in case of a downturn that negatively impacts assets.
There is significant economic uncertainty around the globe due to the persistence of COVID, geopolitical turmoil including the war in Ukraine, natural disasters, rising inflation, and supply shortages. However, the good news is our funded position, which is rapidly improving each year, shows our approach is working.
LAPP’s improved financial position, rebuilt from the depths of the 2008 global collapse, is the result of prudent planning based on a careful balance of funding and investment risks. It's also based on remembering that while we cannot always predict what will happen, we can always try to prepare for it.
For more information on LAPP’s financial position, see the Annual Report page. To learn more about the Plan’s funded position, read the most recent Actuarial Valuation, which can be found in Funding and Investment Publications.