Summary
The U.S. Corporate Pension Peer Study is a comprehensive report that analyzes the current landscape of corporate defined benefit (DB) plans in the United States. It draws on data from over 500 corporate DB plans, focusing on various aspects such as funded status, portfolio positioning, risk and return profiles, and the interplay between pension strategies and corporate financials. The study reveals that the average funded ratio of these plans has reached 108%, with more than half fully funded, indicating a significant recovery since the financial crisis. However, 22% of plans remain under 90% funded, highlighting disparities across different industries and sponsor profiles. The report also discusses expected returns on assets, which have increased to 6.7%, and emphasizes the importance of plan-specific factors in shaping investment strategies. Additionally, the study outlines trends in asset allocation, noting that fixed income now constitutes 54% of average portfolios, reflecting a shift towards more liability-aware investment approaches.
