Articles | January 27, 2022

Model Pension Plan Ends 2021 Fully Funded

During the fourth quarter of 2021, the funded status of the model pension plan examined in each issue of Prism rose by 4 percentage points, to 101 percent, as illustrated in the graph below.

This increase in funded status is primarily attributable to a 4 percent increase in assets. 

Get the full data

Colleagues Having Conversation Download Now

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

U.S. equity markets performed very well during the fourth quarter, to close out a third consecutive calendar year of above-20 percent returns. Developed international equities also performed well for the quarter and the year, but trailed U.S. equities for a fourth consecutive quarter.

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.

We value your privacy. We'll never share your data with anybody.

See more insights

Serious Economist Concentrating On Reading Document

IRS Interim Guidance on Self-Correction Under SECURE 2.0

Learn more about the guidance to examine your plans.
Board Directors Having A Meeting With The Team In The Office At The Construction Site

Securing Your SFA Assets

Learn about the impact of the SFA program and important considerations for trustees.
Project Managers Discussing Marketing Strategy Online Using Laptop

Model Pension Plan’s Funded Status Continues to Rise

Get three graphs that help explain the increase — and learn how plan sponsors should examine changes in their own DB plans — in the latest Prism.

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.

Don't miss out. Join 16,000 others who already get the latest insights from Segal.