Case Name :      A Broken Trust

Authors :           Brian Lane, Vince Bruni-Bossio, Suresh Kalagnanam

Source :              Ivey Publishing

Case ID :           9B15N027 / W15620

Discipline :        Finance

Case Length :    07 pages

Plagiarism : NO (100% Original work)

Based on client meetings, this case profiles a situation in 2014 where pension plan members are struggling to make decisions due to inappropriate account reporting. A sense of urgency permeates the case. The husband’s pension account has recovered much of the value he lost in 2007, but he is concerned that another loss could occur, at a point in his life where he will not have time to recover. Two themes are addressed through a discussion involving a couple and their financial planner: the first considers the differences between defined benefit and defined contribution pension plans, while the second considers appropriate performance reporting for pension plan members.