Taking Stock: NEPC's November 2022 Pension Monitor

Corporate pension plans experienced mixed changes in funded status in November amid declining discount rates and rallying equities. The Treasury yield curve lowered and remained inverted between the one- and 10-year tenors. Total-return plans likely suffered declines in funded status from lower discount rates. Many LDI-oriented plans saw improvements in funded status due to positive equity returns and protection against the reversal in discount rates. NEPC’s hypothetical pension plans witnessed a funded status reduction of 2.2% for the total-return plan compared to a gain of 2% for the LDI-focused plan.