Articles | May 5, 2025

Model Pension Plan's Funded Status Decreases by 3 Points

During the first quarter (Q1) of 2025, the funded status of Segal’s model pension plan examined in each issue of Prism fell by 3 percentage points, to 107 percent, as illustrated in the graph below.

This decrease in funded status is attributable to a 3 percent increase in liabilities, while assets remained relatively level.

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Change in Assets, Liabilities and Funded Ratio

Q1 Prism Graph


Source: Prism Review of First Quarter 2024

Aspects of investment performance that contributed to the model plan’s nominal change in asset value

The model plan’s asset value remained flat during Q1. This was the net result of a negative return in domestic equities, offset by positive returns in international equities and global bonds.

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.

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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.