Mixed Results for DB, DC Plans in Q1

By John Iekel • June 13, 2018 • 0 Comments
There were mixed results for defined benefit and defined contribution plans in the first quarter of 2018, the Federal Reserve reports. In short: assets grew, but so did liabilities.

Assets

The Fed reports that assets for private DB and DC plans — showed mixed results since the 4th quarter of 2017, with DB plans’ assets growing slightly and DC plans assets falling. However, assets for both DB and DC plans in the 1st quarter of 2018 were above those of the same period one year before.

Assets, DB and DC plans (in trillions of dollars)

Type of Plan    1st Quarter, 2017    4th Quarter, 2017    1st Quarter, 2018
 Private DB $3.175 $3.203 $3.212
 Private DC   5.767   6.289   6.249

Liabilities

There was a net increase in the 1st quarter of 2018 in liabilities for all retirement plans — private DB and DC plans, state and local government employee retirement funds, and federal government retirement funds. However, the increase was lower than the increase in liabilities in the 4th quarter of 2017, as well as that in the 1st quarter of last year.

Net Increase in Liabilities, all Retirement Plans (in billions of dollars)

1st Quarter, 2017    4th Quarter, 2017     1st Quarter, 2018 
$419.1  $504.9 $329.5

Funded Status

While there was a slight decline in the funded status of all retirement plans — private DB and DC plans, state and local government employee retirement funds, and federal government retirement funds — and a slight increase in unfunded status since the 4th quarter of 2017, both improved since one year hence.

Funded and Unfunded Liabilities, all Retirement Plans (in trillions of dollars)

Status  1st Quarter, 2017    4th Quarter, 2017    1st Quarter, 2018
Funded    $8.449 $9.023 $8.900
Unfunded      3.998   3.699   3.913






Comments (0)