A Dynamic Asset Allocation (DAA) structure potentially improves a plan’s ability to meet all benefit obligations (short- and long-term) by matching the horizons of the plan’s assets and its liabilities. When the plan’s short- or intermediate-term liabilities increase relative to total assets (e.g., through higher claims, or fewer hours and contributions), DAA moves the plan to a more conservative posture. This move ensures that the plan’s assets are invested less aggressively to match the shorter-term horizon of the plan’s liabilities. On the other hand, when the plan’s short-term liabilities decrease relative to total assets, DAA moves the plan toward a more aggressive posture.