Pension Funded Status Heads South Again

Model of hypothetical pension's assets and liabilities indicates that the typical plan's funded status fell in Q1/2014.

A report just released by the Segal Group indicates that the funded status of the typical corporate pension plan in the United States declined from 95 percent at the end of 2013 to 92 percent at the end of Q1/2014.

During the first quarter, domestic equities (as measured by the Russell 3000) slightly outperformed international equities (as measured by the Morgan Stanley Capital International All Country World Index Ex-U.S.)—2 percent vs. 1 percent. Meanwhile, bonds (as measured by the Citigroup World Government Bond Index) bettered all stocks with a 2.66 percent gain.

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