First, sponsors need the ability and incentives to manage their risks appropriately. Second, the risk that a sponsor will be unable to fulfill its promise must be properly managed. And third, the group-longevity risk I spoke of earlier must be dealt with in some manner. Some of the risks I've spoken about are managed according to laws and regulation.
For example, there are laws that protect employees from the risk that a sponsor might be unable to pay a pension because the pool of contributions was used for some other purpose. And we have regulations that prescribe how large these pools have to be relative to the benefits promised, and that place conditions on how they must be managed.