February 2016 Pension Plan Funding Update

Highlights for February 2016

  • Funded status dropped by 1.8% during February, after dropping 4.6% in January. Liabilities (12 yr duration) were up 1.7% in February and Assets (60 ACWI/40 AGG) were down -0.1%.
  • Long Credit spreads narrowed by 5 bps and yields rose by 11 bps.
  • Corporate credit and government bonds were both positive for the month around 80 bps.

Chart of the Month

  • Liabilities have outperformed assets for seven out of the last eight months. The cumulative outperformance by liabilities since May 31, 2015 has been over 10%. The funded status decline is even worse when you factor in that most plans have realized an increase in liabilities due to the adoption of the new mortality tables.

Pension Plan 2 2016

Read more complete report on February Pension Plan Funding

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