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DB Industry Insights

Articles covering relevant trends we are seeing in the defined benefit plan industry and how they may impact your pension plan.

Phasing Out Funding Relief

As Goldman Sachs noted in their recent paper, “US Corporate Pension Review and Preview: Running in Place,” and PEI would advise, plan sponsors need to consider the fact that funding relief (MAP21, HATFA, BBA) will begin to expire in 2021. Many plan sponsors could start to see the effect of higher actuarial projections past that […]

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In this Environment, are Plan Sponsors Waiting to De-Risk?

A couple of years ago, most plan sponsors were anxiously waiting for interest rates to rise, which would result in major improvements in funded status and provide an opportunity to hedge plan liabilities. 2018 provided some relief, but it was short‐lived. Will plan sponsors continue to wait again? It does not seem likely. As Goldman […]

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Stellar Returns Save Pension Funded Status

High investment returns supported pension funding in 2019. The December 2019 Milliman 100 Pension Funding Index Survey* reported that funded status improved over the fourth quarter to 89.0%, up from 85.4% at the end of the third quarter. Although the liability discount rate rose 11 basis points to 3.20% at the end of the year, […]

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