Funded Status of Model Pension Plan Up Three Percentage Points, According to Sibson Consulting and Segal Rogerscasey

NEW YORK–(BUSINESS WIRE)–During the fourth quarter of 2015, the funded status of the model
pension plan examined in Sibson Consulting and Segal Rogerscasey’s
publication, Prism, increased
by 3 percentage points: from 82 percent to 85 percent.

This increase was the result of a 3 percent asset increase and a 1
percent liability increase during the quarter. Investment performance
improved in the fourth quarter largely due to strong performance by
domestic equities amid the strengthening of the U.S. dollar. Meanwhile,
an increase in the yield curve in the fourth quarter resulted in a small
increase in the effective interest rate and, consequently, a 1 percent
decrease in our model pension plan’s liabilities.

Throughout 2015, the model plan’s funded status fluctuated substantially
from quarter to quarter, from a high of 87 percent to a low of 79
percent.

“After a rollercoaster year in pension funding levels, plan sponsors
have entered 2016 facing significant volatility in the markets,” said Stewart
Lawrence
, National Retirement Practice Leader. “These conditions
underscore the need for plan sponsors to examine their risk-mitigation
strategy.”

To speak with an expert about the findings of this report, and how it
may inform plan sponsors’ decisions, contact Todd Kohlhepp.

Sibson Consulting (www.sibson.com),
a member of The Segal Group, provides strategic human resources
solutions to corporate and non-profit employers and professional service
firms. Sibson’s services include benefits, compensation, talent and
performance management, communications, sales force effectiveness and
change management.

Segal Rogerscasey (www.segalrc.com),
a member of The Segal Group, is a leading global investment solutions
firm that provides innovative, client-driven consulting advice and
outsourcing solutions. The firm has been in operation for 45 years and
is one of the largest U.S.-based investment consultants. Clients include
corporations, non-profit organizations, endowments, foundations, state
and local governments and joint boards of trustees administering benefit
plans under the Taft-Hartley Act. The firm works with financial services
firms through Rogerscasey, a Division of Segal Advisors, and with
Canadian clients through Segal Rogerscasey Canada. The firm is also a
founding member of the Global Investment Research Alliance.

Contacts

The Segal Group
Todd Kohlhepp
Public Affairs
Specialist

212-251-5087
tkohlhepp@segalco.com