Asset Allocation of Defined Benefit Pension Plans

This document is about an analysis of the asset portfolio composition of large defined benefit (DB) pension plans. It explores the relationship between asset allocation and plan characteristics such as funding ratio, active participant ratio, and plan freezes. The study finds that well-funded plans tend to invest more defensively, and plans with a longer liability horizon take on more risk. The analysis is based on data from the Form 5500 Annual Return/Report of Employee Benefit Plan, particularly the asset allocation information reported on Schedule R.