Articles | October 30, 2026
During the third quarter (Q3) of 2026, the funded status of the model pension plan examined in each issue of Prism improved by 8 percentage points, to 118 percent, as illustrated in the graph below.
This increase in funded status, the second consecutive quarter with an 8-point increase, is primarily attributable to a 7 percent decrease in liabilities driven by higher interest rates.
Source: Prism Review of Third Quarter 2026
The model plan’s asset value decreased slightly during Q3. This was the result of negative returns in global bonds, largely offset by positive returns in domestic equities and international equities.
Plan sponsors should examine changes in their own DB plans’ assets, liabilities and funded ratios from the vantage point of both accounting and funding metrics.
We can help employers project their DB plans’ funded ratios with a complete view of the range of a plan’s possible future statuses, presenting early warning signs of potential challenges.
This page is for informational purposes only and does not constitute legal, tax or investment advice. You are encouraged to discuss the issues raised here with your legal, tax and other advisors before determining how the issues apply to your specific situations.
