collage of U.S. currency and columns of building (Photo: Shutterstock)

While COVID-19 dominated headlines, another tumultuous topic for corporate and other single-employer pension plans during 2020 was discount rates. Many plan sponsors are fully aware of how falling discount rates have resulted in larger liabilities and potentially lower funded statuses for their pension plans. What is driving the discussion now is the path of discount rates going forward. While many believe discount rates could rise in the future, current dynamics suggest this rise will be due to a steeper yield curve, which may actually result in a decrease in funded status for plan sponsors employing certain liability-hedging strategies.

Complete your profile to continue reading and get FREE access to BenefitsPRO, part of your ALM digital membership.

Your access to unlimited BenefitsPRO content isn’t changing.
Once you are an ALM digital member, you’ll receive:

  • Breaking benefits news and analysis, on-site and via our newsletters and custom alerts
  • Educational webcasts, white papers, and ebooks from industry thought leaders
  • Critical converage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

Retirement
Defined Benefits