Model Pension Plan’s Funded Status Increases by 5 Points

Change in Assets, Liabilities and Funded Ratio

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

Domestic equities had positive returns for a fifth consecutive quarter, closing out another strong calendar year for U.S. stocks. Internationally, equity market performance was poor, with both developed international stocks and emerging market stocks posting negative returns for the quarter that fell well short of domestic equities.

At their December meeting, the Federal Open Market Committee announced a third consecutive rate cut that was widely anticipated by 25 basis points, lowering the target range for the federal funds rate to 4.25-4.50 percent. They also provided forward guidance that anticipates much slower rate easing during 2025.

Fixed income returns were mostly negative around the globe, following interest rates that moved higher after many central banks (including in the U.S.) appear to be nearing the end of their rate-easing cycles.