Model Pension Tracker by Segal Marco Advisors Reveals Funded Status Increase in Q1 2019

Model Pension Tracker by Segal Marco Advisors Reveals Funded Status Increase in Q1 2019

The funded status of the model pension plan examined by Sibson Consulting and Segal Marco Advisors rose to 89 percent in the first quarter of 2019, increasing by 2 percentage points since the previous quarter, as illustrated by red line in the accompanying graph. This increase in funded status is a result of a 9 percent asset gain and a 6 percent increase in liabilities.

“For the first time in seven years, global stocks had double-digit returns. U.S. stocks were the best performers, rounding out the quarter at 14 percent,” said David Palmerino, vice president with Segal Marco Advisors. “U.S. stocks had their best quarter in almost 10 years and developed international stocks had their best quarter in more than 5 years, which helped contribute to the increase in asset value.”

National Retirement Practice Leader Stewart Lawrence recommends that plan sponsors examine their defined benefit (DB) plans for both accounting and funding metrics: “Mitigating the financial volatility of a pension plan is top of mind for plan sponsors now more than ever due to the uncertain future of the economy,” he said. “Plan sponsors should consider asset-liability modeling capabilities to help enhance risk mitigation.”

To speak with one of our consultants about the model plan, and how it may inform decision-making for pension plans, please contact Amira Rubin.


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Segal Marco Advisors, a member of Segal, provides trusted advice that improves lives. Segal Marco delivers innovative, client-driven investment consulting advice, outsourcing solutions, proxy voting and corporate governance services. 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.