TXU Corp., Dallas, will conduct an asset-liability study at the beginning of 2007 to examine the impact the Pension Protection Act and changes to FAS 87 will have on the company's $2 billion pension plan, said John Thompson, trust investment officer and head of the plan. One of the strategies being looked at is a liability-driven investment strategy, although it is too early to say what type, if any, would be implemented, he said.
"We're mostly looking to see if our current investment strategy still holds up with the changes. We're underfunded, like most people, but it's not at a very significant level, so we're not too worried about that," said Mr. Thompson. The plan is underfunded by about 5%.
Mr. Thompson said the study will be conducted in-house, and there is no specific date for conclusion.