About the Pension IndicatorTM

The Pension Indicator was developed as a resource to help employers monitor the estimated changes to their pension plan's funded status as it is reported for financial statement purposes under U.S. GAAP.

Example 1: If the market value of the pension plan's assets as of December 31, previous year, was $90 million and the projected benefit obligation as of the same date, December 31, previous year, was $100 million, the funded plan percentage was 90%. If the year-to-date Pension Indicator™ is +6%, the current estimated funded plan percentage would now be 106% of 90%, or 95.4%*. Similarly, if the year-to-date Pension Indicator™ is -­7%, the current estimated funded plan percentage would be 93% of 90%, or 83.7%*.

Example 2: Assuming that the funded plan percentage as of the last day of the previous month was estimated to be 90%, then if the monthly Pension Indicator™ is +2%, the current estimated funded plan percentage would now be 102% of 90%, or 91.8%*. Similarly, if the monthly Pension Indicator™ is ­-1%, the current estimated funded plan percentage would be 99% of 90%, or 89.1%*.

* All other factors and variables holding steady.

The Pension Indicator™ is the property of USI Consulting Group and Clearstead. Use of the Pension Indicator™ is not, however, restricted if proper attribution to USI Consulting Group and Clearstead is made. Its use should be limited for estimation purposes only and USI Consulting Group and Clearstead do not assume any liability for its use or misuse by any other person not authorized by and acting on behalf of the firms.

FINDLEY

 

 USI Consulting Group (USICG) has been delivering retirement consulting and administration services to organizations and their participants for over 40 years. We offer innovative solutions to mitigate risk, stay compliant and protect plan sponsors and fiduciaries with deep commitment to client satisfaction and delivering superior results.

 

 

Clearstead Logo

 Clearstead is an independent financial advisory firm serving wealthy families and leading institutions across the country. As a fiduciary, it provides wealth management services and investment consulting to enable clients to meet their financial objectives, achieve their aspirations, and build strong futures.