“…This example illustrates only one of the potential applications of simulation analysis in evaluating the projected financial condition of a pension plan. Simulation techniques can also be very helpful in understanding the impact of actuarial assumptions, funding policy, and potential benefit formula changes [1]. By allowing a clear understanding of the full range of potential results, simulation analysis allows plan sponsors to “pre‐experience” future conditions and to make better decisions today based on a more complete understanding of what the future may hold.…”