About the Pension IndicatorTM

The Pension Indicator was developed to allow employers to 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 Findley, a Division of USI, and Clearstead. Use of the Pension Indicator™ is not, however, restricted if proper attribution to Findley, a Division of USI, and Clearstead is made. Its use should be limited for estimation purposes only and Findley, a Division of USI, 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

 

 At Findley, a Division of USI, we deliver expertise, experience, and innovative solutions related to employer-sponsored retirement plans, benefits, and human capital services. We are proud to be part of USI, one of the largest insurance brokerage and consulting firms in the world, delivering property and casualty, employee benefits, personal risk, program and retirement solutions to large risk management clients, middle-market companies, smaller firms and individuals.

 

 

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Clearstead is a leading institutional and private client advisory firm.  We are relentless in providing superior solutions so clients can exceed their aspirations, and build stronger legacies for their families, their communities, and themselves.  We do so with our authentic, steadfast, and innovative employee and board-member owned firm of nearly 80 professionals who work to tackle complex investment, financial, tax, and governance needs of our institutional and private clients.