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.

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Model Pension Plans Funded Status Rises Q1 2022

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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.

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Model Pension Plan’s Fully Funded Status Decreases 2 Points

In Q1 2026, the funded status of our model private sector single-employer pension plan fell 2 points to 107%. Download Prism to see why.

Retirement, Corporate

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Q2 2026 Trends Focus: AI in Healthcare

Learn how AI trends are influencing healthcare costs, participant experience and oversight — and what health plan sponsors should watch next.

Communications, Technology, Health, Multiemployer Plans, Public Sector, Healthcare Industry, Corporate, Artificial Intelligence, Higher Education

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Seeking Better Benefits Engagement? Use AI Strategically

Learn how blending human empathy, smart design and AI can improve employee benefits engagement and make benefits easier to find and use.

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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.