Market Overview

Sibson Consulting and Segal Marco Advisors' Pension Funding Tracker Shows Another Funding Increase


The funded status of the model pension plan examined by Sibson
Consulting and Segal Marco Advisors rose
again by 2 percentage points to 93 percent
in the second quarter of
2018, as illustrated in the graph below. The funding increase is a
result of a flat asset return combined with a 3 percent decrease in
liabilities. The decrease in liabilities was due to an increase in
high-quality corporate yields.

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(Graphic: Business Wire)

(Graphic: Business Wire)

"Domestic stocks were the lone bright spot, posting positive returns
each month of Q2, and outperforming developed international stocks and
emerging market stocks," said David Palmerino, vice president
with Segal Marco Advisors. He added, "FOMC increased the target range
for the Federal Funds Rate to 2 percent, its second increase this year,
but the move was largely telegraphed and had no dramatic impact on bond

National Retirement Practice Leader Stewart Lawrence advised, "As
employers reconsider their strategies and tactics for 2018, this might
be an appropriate time to raise the issue of examining their plans'
evolving risk-mitigation strategy."

To speak with one of our consultants about the model plan, and how it
may inform decision-making for employers that have a pension plan,
please contact me.

Sibson Consulting (,
another 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.

Segal Marco Advisors (,
a member of The
Segal Group
, 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.

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