Discount rates rose sharply, ending a 5-month streak of declines and reducing pension liabilities.
• Major asset classes across the board ended the month with negative returns.
• Depending on liability duration, funded status, and equity exposure pension plans may have seen anywhere from slight decreases in funded status (shorter duration, more fixed income exposure) to increases on the order of magnitude of 0.5% – 2.0% (average duration, more equities, underfunded).
US Pension Briefing – September 2024
Treasury yields moved lower again in August as the market reacted to Fed Chair, Jerome Powell’s indication that the Fed would begin an easing cycle with an initial rate cut in September.
Pension Plan Annuity Purchase Update Q2 2024
US Pension Briefing – August 2024
Treasury yields moved lower again in August as the market reacted to Fed Chair, Jerome Powell’s indication that the Fed would begin an easing cycle with an initial rate cut in September.
US Pension Briefing – July 2024
Key takeaways Discount rates dropped slightly due in July as the Treasury yield curve shifted lower…
Pension Plan Annuity Purchase Update Q1 2024
US Pension Briefing – June 2024
Key takeaways Discount rates dropped slightly due in June as the Treasury yield curve shifted lower…
US Pension Briefing – May 2024
Key takeaways. Discount rates dropped slightly due to market volatility while the Treasury yield curve shifted lower but remained inverted…
Pension Plan Annuity Purchase Update Q4 2023
US Pension Briefing – April 2024
Treasury yields increased significantly during the month of April, raising pension discount rates along with them while credit spreads held steady. With the significant rise in discount rates, we expect pension liabilities will have decreased approximately 3.5% – 6.5% depending on a pension plan’s characteristics.
US Pension Briefing – March 2024
With the slight pull back in interest rates during the month, pension liabilities generally increased anywhere from 0.75% – 1.5% depending on a plan’s cash flow characteristics. Credit spreads continue to be tight, compared to typical levels.
US Pension Briefing – February 2024
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