Sibson Consulting and Segal Marco Advisors’ Pension Funding Tracker Shows a Funding Decrease in Fourth Quarter of 2018

NEW YORK–(BUSINESS WIRE)–The funded status of the model pension plan examined by Sibson
Consulting and Segal Marco Advisors dropped
by 8 percentage points to 87 percent
in the fourth quarter of 2018,
as illustrated by the red line in the accompanying graph.

The funding decrease is a result of a 7 percent asset loss, compounded
by a 2 percent increase in liabilities. This marks the first drop in the
plan’s funded status, after four consecutive quarters of increase.

“While global bonds performed well, domestic stocks had their worst
quarter in more than five years; U.S. stocks fell nearly 10 percent in
the month of December alone,” said David Palmerino, vice
president with Segal Marco Advisors. “These and other aspects
contributed to the 7 percent change in asset value.”

National Retirement Practice Leader Stewart Lawrence suggests
that plan sponsors examine changes in their own defined benefit plans
for both accounting and funding metrics: “Any change in either the shape
or level of the yield curve, could have a different impact on
liabilities for plans with different maturities,” he noted. “Further,
plan sponsors should be sure that they have explored the merits of
mitigating the volatility of the plan’s funded status through
utilization of various de-risking techniques.”

To speak with one of our consultants about the model plan, and how it
may inform decision-making for employers that have a pension plan,
please contact Erin

Segal Marco Advisors (,
a member of The
Segal Group
, provides innovative, client-driven consulting advice,
outsourcing solutions, proxy voting and corporate governance. Clients
include joint boards of trustees administering benefit plans under the
Taft-Hartley Act, state and local governments, corporations, non-profit
organizations, endowments and foundations. The firm works with financial
services firms through Rogerscasey, a Division of Segal Advisors, and
with Canadian clients through Segal Rogerscasey Canada.

Sibson Consulting (,
another 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, human capital
management and change management consulting.


The Segal Group
Erin Burns, VP, Public Relations
212-251-5033 | M 646-660-5595

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