Archived Insight | April 27, 2022

Model Pension Plan's Funded Status Rises

During the first quarter of 2022, the funded status of the model pension plan examined in each issue of Prism rose by 6 percentage points, to 107 percent, as illustrated in the graph below.

This increase in funded status is primarily attributable to a 11 percent decrease in liabilities, partially offset by a 6 percent decrease in assets.

Get the full data

Model Pension Plans Funded Status Rises Q1 2022 Download Now

Prism Review of First Quarter 2022

Aspects of investment performance that contributed to the loss in asset value

Equity and fixed income returns were negative across the board during Q1, as Russia’s invasion of Ukraine and relentlessly increasing inflation readings globally dominated headlines.

U.S. equity markets had their worst performance since Q1 2020 (when COVID-19 lockdowns began), with March providing slightly positive returns, which could not offset the negative returns during the first two months of the quarter.

Fixed income returns were poor both domestically and internationally as interest rates soared across the globe.

Examine your own DB plan’s experience

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.

See more insights

Crowd Of People On The White House Grounds

How the One Big Beautiful Bill Act Will Impact Health Plans

Segal's July 30 webinar explores how the Big Beautiful Bill Act and recent SCOTUS rulings may reshape health plans and compliance strategies.
Doctor With Psoriasis Patient

Q3 2025 Trends Focus: Specialty Dermatological Drugs

Learn about the rising cost of these drugs, emerging therapies for psoriasis, the biosimilar market and four cost-management strategies.
Doctor Explaining The Diagnosis To A Girl And Her Father In The Consultation Room

Budget Act Provisions that Affect Employee Benefits

Plan sponsors: Review several parts of the bill, particularly those related to Health Savings Accounts (HSAs) and certain other fringe benefits.

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.