Entities have strong incentives for under-provisioning, because: •  It is generally not fully tax deductible in many jurisdictions; and  •  Many business executives take a short term view of showing enhanced profits. High provisioning reduces profits, and hence dividend distribution and share price; and more importantly, bonus payment to top management and staff. The same holds good for banks also.
I know that risk is ever-present in your work, as you fulfill your commitments to the beneficiaries and sponsors of your pension plans. Important risks surround the investment performance of those plans, as well as the value of pension liabilities. All of you are, no doubt, acutely aware of these risks, which have become much more pronounced over the past few years.