Simulated Pension Demonstrates Sound Long-Term Strategy for Managing
Risk
NEW YORK–(BUSINESS WIRE)–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.
Sibson
Consulting, a member of The
Segal Group, provides trusted advice that improves lives. Sibson
delivers strategic human resources solutions to corporate, higher
education and non-profit employers. Sibson’s services include benefits,
compensation, human capital management and change management consulting.
Segal
Marco Advisors, a member of The
Segal Group, 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.
Contacts
The Segal Group
Amira Rubin, 212-251-5000
[email protected]
