The 2008 financial crisis and the difficult market conditions that have followed, combined with a lack of appropriate objectives, have completely reshaped the pension fund landscape. The defined contributions pension funds all over the world have seen a huge deterioration of their funding ratios and are now desperately looking for high returns, in order to be able to deliver old age pensions. 

We will examine state of the art research in the field of risk management in the presence of liability constraints and present a new approach of funding ratio management through dynamic risk allocation that takes into account future uncertainty. This approach results from combining several research areas: portfolio insurance, asset/liability management and stochastic simulations, together with extensive market knowledge. The presentation will end with a US pension fund case study comparing in a stochastic universe different ALM techniques currently used.