First Quarter 2014 Pension Plan Experience


During the first quarter of 2014, the funded status of the model pension plan examined in each issue of Prism decreased by 3 percentage points: from 95 percent to 92 percent. This decrease was driven by an asset return of 2 percent and a liability increase of 5 percent.

Plan sponsors should examine changes in their own defined benefit plans' assets, liabilities and funded ratios both from the vantage point of accounting and funding metrics.