Archived Insight | January 30, 2020

Prism: Funded Status of Pension Plan and More in Q4 2019

During the fourth quarter of 2019 (Q4), the funded status of the model pension plan examined in each issue of Prism rose by 4 percentage points, to 85 percent. 

The last quarter of 2019 also saw the yield curve—one of the most talked-about pieces of geometry among market watchers, shift slightly. Will that little shimmy lead to a big shake-up for pension plan assets? 

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Changes in the yield curve mean changes in the market?

The yield curve represents the yield rates of bonds with equal credit value but different maturities. To the trained eye, the yield curve can reveal how bond investors feel about risk in the market which—in theory—can help predict which way the economy is headed.

   

Our year in review

As a pension plan sponsor, you have to keep perspective if you want to safeguard the future of your people, and the new year presents the perfect opportunity to look back on how the market shifted.

 

Q3 2019

During the third quarter of 2019 (Q3), the funded status of the model pension plan examined in each issue of Prism fell by 5 percentage points, to 81 percent.

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Q2 2019

During the second quarter of 2019 (Q2), the funded status of Prism's model pension plan fell by 2 percentage points, to 86 percent.

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Q1 2019

During the first quarter of 2019 (Q1), the funded status of the model pension plan examined in each issue of Prism rose by 2 percentage points, to 89 percent. 

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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.