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June Heat for DB Plans

Practice Management

June brings increasing warmth, and in 2023 not just because summer arrived—by a variety of measures, the same held true for private-sector defined benefit plans. 

Funded Status 

Reports show that the funded status of private-sector pension plans improved in June, according to October Three, Wilshire and Insight Investment:

 

Longer Term

These analysts also show improvement in pension plans’ funding levels for the year so far: 

Assets and Liabilities

Pension plans’ asset levels improved in June, say October Three and Insight Investment. The traditional plan October Three tracks gained 3% in June, and the conservative plan gained 1%. Insight Investment shows similar growth in assets, 1.9%. 

This is part of longer-term growth in assets by October Three’s calculations: they show that the assets of the traditional plan they track have gained 9% for 2023 so far, while assets of the conservative plan have gained 4% the first half of 2023. 

Liabilities are a different matter, falling just slightly according to all three analyses. They stayed roughly static in June for October Three’s traditional plan, and fell slightly for the conservative plan. Insight Investment says that liabilities fell slightly, by 0.3%, and Wilshire reports “no material change” in liabilities.