Pension Funded Status Rises in 3rd Quarter

New York (10/24/16) — 

Slight uptick halts recent deep declines.

Pension funding levels inched higher in the third quarter but continued to lag well below where they began the year, according to  Sibson and Segal Rogerscasey’s Prism.

In the third quarter of 2016, the funded status increased by one percentage point, from 76 percent to 77 percent. The rise was the result of a 3 percent asset increase and a 2 percent liability increase during the quarter. The plan’s funded status started the year at 83 percent.


Investment performance in the third quarter was strong, as returns on global equities were significantly positive. A marginal decrease in the yield curve accounted for the 2 percent increase in the model plan’s liabilities.


 “The significant volatility in funded status in the recent past highlights the importance for retirement plan sponsors to examine their risk-mitigation strategies, especially relating to the uncompensated risk of interest-rate movements,” commented Stewart Lawrence, National Retirement Practice Leader.

To speak with Mr. Lawrence about the findings of this report, and how it may inform plan sponsors’ decision-making, contact Todd Kohlhepp.

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Sibson Consulting (, a 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, talent and performance management, communications, sales force effectiveness and change management.

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