Articles | August 6, 2024

3-Point Rise in Model Pension Plan's Funded Status

During the second quarter (Q2) of 2024, the funded status of the model pension plan examined in each issue of Prism rose by 3 percentage points, to 107 percent, as illustrated in the graph below.

This increase in funded status is attributable to a 1 percent increase in assets and a 1 percent decrease in liabilities.

Get the full data

Q2 2024 3-Point Rise in Model Pension Plans Funded Status Download Now

Change in Assets, Liabilities and Funded Ratio

Change in Assets, Liabilities and Funded Ratio


Source: Prism Review of Second Quarter 2024

 

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

Domestic equities again had positive returns in Q2, continuing a strong calendar year for U.S. stocks.

U.S. unemployment remains low, inflation remains muted and corporate profits remain strong (although somewhat concentrated with the largest companies) — all supporting strong market performance.

Fixed income returns were mostly negative around the globe, with interest rates ticking slightly higher during the 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.

See more insights

Mixed Race Couple Smiling Using A Digital Tablet

Single Sign-On Benefits Portal Transforms Member Experience

See how a national sports organization transformed its outdated benefits experience into one secure, mobile-friendly platform.

Benefits Administration, Technology, Benefits Technology, Corporate, ATC

Read Full Insight

A Senior Asian Woman Having Fun Playing Pickleball At The Park

Retiree Health Plan Sponsors: 2026 Medicare Part B Premiums Increase

See key premium, deductible and coinsurance changes for 2026, plus practical steps for managing reimbursement, IRMAA changes and plan communications.

Health, Compliance, Multiemployer Plans, Public Sector, Healthcare Industry, Higher Education, Architecture Engineering & Construction, Corporate

Read Full Insight

Doctor Holding A Digital Tablet Discussing Fertility Benefits With Couple

New Opportunities for Fertility Benefit Coverage

See how new guidance helps group health plan sponsors expand fertility benefits — including excepted benefits, HRAs and cost-saving strategies.

Health, Compliance, Multiemployer Plans, Public Sector, Healthcare Industry, Higher Education, Architecture Engineering & Construction, Corporate

Read Full Insight

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.