The higher the interest rates, the lower the present value of the benefits promised in the future. [...] Therefore, the investment of a significant portion of the pension fund in equities will result in increased volatility of the funding position of the plan. [...] Many factors influence the decision of the plan sponsor respecting the best asset mix but the sponsor’s motivation seems to be the optimization of net returns on assets in the spirit of containing the volatility of pension contributions. [...] In this case, the court ordered the distribution of surplus to plan members upon the partial termination of the plan after a group of employees were laid-off despite the fact that such distribution would worsen the funding position of the plan and weaken benefit security. [...] The actuarial valuation involves comparing the value of plan assets with the value of the benefits (also called plan liabilities) that the plan is expected to pay in the future.