Prism

Pension Funding Tracker

Rising interest rates contributed to a fourth-quarter 2016 rebound in pension funding levels, according to the latest issue of Prism.

Prism examines the effect of changes in the assets and liabilities of a model single-employer private-sector defined benefit plan on its funded ratio over the four latest quarters.

In this issue, you’ll learn:

  • What aspects of fourth-quarter investment performance contributed to the 2 percent asset decline for the Prism model pension plan;
  • How changes in the yield curve during the fourth quarter decreased the model plan’s liability by about 7 percent;
  • The impact of these changes on the model plan’s funded status; and

How deterministic and asset-liability stochastic modeling can help you measure the risks to your own plan stemming from recent changes in its assets, liabilities and funded ratio.

 

Previous issues are available on the Prism page.

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