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

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Findley Davies is an independent consulting firm and trusted business partner. We help you make critical decisions about employee benefits, compensation, and change management to make sure your human resources strategy aligns with organizational objectives. We provide strategic counsel to help navigate the changing benefits landscape and successfully manage workforce issues.

 

Hartland

 

 

Hartland is an independent institutional and wealth advisory firm.  Our institutional clients include retirement funds, endowments and foundation, and healthcare organizations.  Hartland was established in 1989 and is owned 100% by its professionals and Board of Directors.