Pension Funding Tracker Shows Positive Gains in First Quarter

Sibson and Segal Marco Advisors’ Pension Funding Tracker Shows Positive Gains in First Quarter

The funded status of the model pension plan examined by Sibson Consulting and Segal Marco Advisors rose 3 percentage points to 84 percent in the first quarter of 2017. The funding increase was due to a 4 percent gain in asset value that offset a 1 percent liability increase.


“Domestic and international equities both performed well this quarter, with developed and emerging market stocks showing the highest increase,” commented David Palmerino, vice president at Segal Marco Advisors. “The March announcement of an interest rate hike by the Fed was largely expected and had no impact on fixed-income returns, which were overall modestly positive.”


National Retirement Practice Leader Stewart Lawrence suggests that plan sponsors examine changes in their own defined benefit plans for both accounting and funding metrics. “There are two important ways plan sponsors can ensure they’re doing their due diligence,” He noted. “Deterministic modeling, which projects results under a specific set of assumptions, and asset-liability modeling, which offers a complete view of possible statuses for a plan and act as an early warning sign of potential upcoming challenges.”

To speak with one of our experts about the model plan, and how it may inform plan sponsors’ decision-making, please contact me.


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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.