Industry Updates

Retirement Update – May 2018

Retirement Update – May 2018

The rise in discount rates during the month will decrease liabilities for most plans.  This, combined with a flat US equity market across the month, will have the majority of plans seeing an improved funded percentage.

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Retirement Update – April 2018

Retirement Update – April 2018

The small drop in discount rates during the month will increase liabilities for most plans, while the generally negative equity returns will ensure that investments don’t make up for this liability increase.  Neither the discount rate movement nor the asset performance was catastrophic, but the majority of plans will likely see a drop in their funded percentage.

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Retirement Update – March 2018

Retirement Update – March 2018

Plan sponsors should see little change in funded status as of the end of February. Negative equity returns offset decreasing liabilities. Discount rates rose by over 0.2% in February to their highest level since April 2017. At the same time, the 3.7% decline in the Russell 1000 index of US stocks represented to worst monthly performance for equities since January 2016, when stocks fell by 5.4%.

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Retirement Update – February 2018

Retirement Update – February 2018

Between an uptick in discount rates and strong equity performance, plan sponsors should see a nice bump in funded status as of the end of January. Discount rates recovered from the dip they took at the end of December. Equities had a solid month with US and international equities up around 5% and emerging markets over 8%.

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Retirement Update – January 2018

Retirement Update – January 2018

Pension plan funded status likely took a small hit in December. The Citi Pension discount rate dropped 18 basis points during December implying a 2-3% increase in liabilities. This was offset by favorable returns albeit generally below 2%. Plan funded status for calendar 2017 months should be at least modestly improved for most plans; how much will depend on asset allocation.

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Retirement Update – December 2017

Retirement Update – December 2017

Most plans will continue to see funded status increases as equities continue to rally while discount rates remain steady. Even with discount rates down YTD, plans will most likely be better funded come year-end barring any drastic changes in rates or returns during December.

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Retirement Update – November 2017

Retirement Update – November 2017

For most plans, October was a good month with funded status improvements driven by assets posting decent returns and liabilities remaining fairly flat. Year-to-date most plans have seen some funded status improvements due to the strong returns in the markets despite falling discount rates.

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August 2017

August 2017

August 2017   Download a PDF version of this article…   Download an Excel version of this article… What Happened in August 2017? Market Returns Interest Rates The discount rate on the Citigroup Pension Liability Index (CPLI) fell from...

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July 2017

July 2017

  Download a PDF version of this article…   Download an Excel version of this article… What Happened in July 2017? Market Returns Interest Rates The discount rate on the Citigroup Pension Liability Index (CPLI) fell from 3.87% to 3.86%. The US...

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June 2017

June 2017

  Download a PDF version of this article…   Download an Excel version of this article… What Happened in June 2017? Market Returns Interest Rates The discount rate on the Citigroup Pension Liability Index (CPLI) fell from 3.92% to 3.87%. The US...

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