NEPC’s quarterly pension funded status monitor tracks the funded status of two hypothetical plans to gauge the impact of movements in markets, interest rates, and credit spreads on pension plans. The funded status of typical corporate pension plans increased in the fourth quarter by approximately 6.4% for a total-return plan, while an LDI-focused plan saw a smaller increase of 4.0%, according to NEPC’s hypothetical open and frozen pension plans.

The total-return plan outperformed as global equities posted robust gains and liability valuations decreased.

The LDI-focused plan experienced an increase to funded status as moderate fixed-income and liability losses were offset by strong global equity markets. The plan is currently 75.6% hedged as of December 31.

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