NEW YORK--(BUSINESS WIRE)--The funded status of the model pension plan examined by Sibson Consulting and Segal Marco Advisors rose 3 percentage points to 84 percent in the first quarter of 2017. The funding increase was due to a 4 percent gain in asset value that offset a 1 percent liability increase.
“Domestic and international equities both performed well this quarter, with developed and emerging market stocks showing the highest increase,” commented David Palmerino, vice president at Segal Marco Advisors. “The March announcement of an interest rate hike by the Fed was largely expected and had no impact on fixed-income returns, which were overall modestly positive.”
National Retirement Practice Leader Stewart Lawrence suggests that plan sponsors examine changes in their own defined benefit plans for both accounting and funding metrics. “There are two important ways plan sponsors can ensure they’re doing their due diligence,” He noted. “Deterministic modeling, which projects results under a specific set of assumptions, and asset-liability modeling, which offers a complete view of possible statuses for a plan and act as an early warning sign of potential upcoming challenges.”
To speak with one of our experts about the model plan, and how it may inform plan sponsors’ decision-making, contact Todd Kohlhepp.
Segal Marco Advisors (www.segalmarco.com), a member of The Segal Group, is a newly-merged firm of two leading investment consultancies – The Marco Consulting Group and Segal Rogerscasey. Together this firm provides innovative, client-driven consulting advice, outsourcing solutions, proxy voting and corporate governance. 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. The firm is also a founding member of the Global Investment Research Alliance.
Sibson Consulting (www.sibson.com), 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, human capital management and change management consulting.
The Segal Group ( www.segalgroup.net) is a private, employee-owned consulting firm headquartered in New York and with more than 1,000 employees throughout the U.S. and Canada. Members of The Segal Group include: Segal Consulting, Sibson Consulting, Segal Select Insurance Services, Inc. and Segal Marco Advisors.