DarienHacker

For the perspective of the plan sponsor, the liabilities of retired workers have less inflation risk. Their benefits were locked in at their retirement in most cases. For active workers, the plan sponsor faces inflation risk because increases in their salary are linked to productivity gains and wage inflation. If wage inflation occurs, the sponsor is at risk of the future benefits to be paid being larger.
The caveot would be if retired workers recieved a cost of living adjustment to their pension which I think I saw in an example somewhere.