Sibson Consulting and Segal Marco Advisors’ Pension Funding Tracker Shows Another Funding Increase
August 21 2018 - 9:23AM
Business Wire
The funded status of the model pension plan examined by Sibson
Consulting and Segal Marco Advisors rose again by 2 percentage
points to 93 percent in the second quarter of 2018, as illustrated
in the graph below. The funding increase is a result of a flat
asset return combined with a 3 percent decrease in
liabilities. The decrease in liabilities was due to an increase in
high-quality corporate yields.
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(Graphic: Business Wire)
“Domestic stocks were the lone bright spot, posting positive
returns each month of Q2, and outperforming developed international
stocks and emerging market stocks,” said David Palmerino,
vice president with Segal Marco Advisors. He added, “FOMC
increased the target range for the Federal Funds Rate to
2 percent, its second increase this year, but the move was
largely telegraphed and had no dramatic impact on bond prices.”
National Retirement Practice Leader Stewart Lawrence
advised, “As employers reconsider their strategies and tactics for
2018, this might be an appropriate time to raise the issue of
examining their plans’ evolving risk-mitigation strategy.”
To speak with one of our consultants about the model plan, and
how it may inform decision-making for employers that have a pension
plan, please contact me.
Sibson Consulting (www.sibson.com), another member
of The Segal Group, provides strategic human resources solutions to
corporate and non-profit employers and professional service firms.
Sibson's services include benefits, compensation, human capital
management and change management consulting.
Segal Marco Advisors (www.segalmarco.com), a member
of The Segal Group, provides innovative, client-driven consulting
advice, outsourcing solutions, proxy voting and corporate
governance. Clients include joint boards of trustees administering
benefit plans under the Taft-Hartley Act, state and local
governments, corporations, non-profit organizations, endowments and
foundations. The firm works with financial services firms through
Rogerscasey, a Division of Segal Advisors, and with Canadian
clients through Segal Rogerscasey Canada.
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The Segal GroupErin Burnseburns@segalco.com