The largest corporate DB plan sponsors make subtle shifts in strategy as funded status stagnates

The largest corporate DB plan sponsors tend to attract headlines when they make strategic changes, and they are often seen as "first movers" when it comes to implementing new strategies. These types of strategic changes by the most sizable corporate DB plan sponsors often cause ripple effects in the industry that linger for years. For this reason, we find it instructive to take a deep dive into the pension-related actions these companies are taking year-to-year.

Funded status stagnated during this period, past trends continued—and a few new trends emerged. This paper takes a look at:

  • Funded status changes from 2014-2015
  • Comparison of beginning of the year funding versus contributions made throughout the year
  • Investment strategy towards fixed income
  • Continuation of risk transfer
  • Adoption of new pension cost strategies
  • Expected long-term return on assets (ELTRA) assumption
  • Usage of the new Society of Actuaries (SOA) mortality tables

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