Industry Trends
Demographics: Size of Plan
| >$15B | $5B – $15B | $1B – $5B | $500M – $1B | <$500M | |
| ALL 2015 RESPONDENTS | 44% | 23% | 21% | 6% | 7% |
| CURRENT PLAN STATUS | |||||
| Open | 32% | 29% | 34% | 5% | 0% |
| Frozen | 47% | 18% | 18% | 6% | 12% |
| Closed | 48% | 28% | 17% | 7% | 0% |
| ENDGAME STATUS | |||||
| Keep open/maintain | 32% | 38% | 24% | 5% | 0% |
| Close/freeze/lump sum | 42% | 23% | 23% | 4% | 8% |
| Buy-in/buyout | 38% | 23% | 23% | 15% | 0% |
| Continue to manage | 46% | 26% | 17% | 6% | 6% |
Current Plan Status
| OPEN TO NEW ENTRANTS AND ACCRUALS |
FROZEN | CLOSED TO NEW ENTRANTS, STILL ACCRUING |
|
| ALL 2015 RESPONDENTS | 47% | 20% | 33% |
| >$15B | 37% | 23% | 40% |
| $5B – $15B | 52% | 13% | 35% |
| $1B – $5B | 64% | 14% | 23% |
| $500M – $1B | 40% | 20% | 40% |
| <$500M | 0% | 100% | 0% |
Your plan’s endgame…
| ALL 2015 | >$15B | $5B – $15B | $1B – $5B | $500M – $1B | <$500M | |
| Keep open/maintain | 47% | 39% | 64% | 47% | 40% | 0% |
| Close for new entrants | 14% | 6% | 18% | 21% | 20% | 0% |
| Freeze | 20% | 26% | 14% | 21% | 0% | 50% |
| Offer lump sums | 23% | 19% | 23% | 26% | 0% | 100% |
| Buyout | 16% | 16% | 14% | 16% | 40% | 0% |
| Buy-in | 1% | 0% | 5% | 0% | 0% | 0% |
| Manage/de-risk* | 44% | 52% | 41% | 32% | 40% | 100% |
| Other | 5% | 10% | 5% | 0% | 0% | 0% |
… and its target funded ratio on a GAAP basis.
| >110% | 105%–110% | 100%–105% | <100% | |
| ALL 2015 RESPONDENTS | 41% | 29% | 21% | 9% |
| CURRENT PLAN STATUS | ||||
| Open | 34% | 26% | 29% | 11% |
| Frozen | 31% | 54% | 0% | 15% |
| Closed | 54% | 21% | 21% | 4% |
| ENDGAME STATUS | ||||
| Keep open/maintain | 44% | 24% | 26% | 6% |
| Close/freeze/lump sum | 31% | 23% | 35% | 12% |
| Buy-in/buyout | 31% | 38% | 31% | 0% |
| Continue to manage | 41% | 32% | 15% | 12% |
Average Current Funded Ratio
| PPA/MAP-21 BASIS | PPA/24-MONTH AVG. SEGMENT RATES BASIS | GAAP/PBO BASIS | |
| ALL 2015 RESPONDENTS | 101% | 89% | 91% |
| CURRENT PLAN STATUS | |||
| Open | 98% | 89% | 90% |
| Frozen | 99% | 86% | 84% |
| Closed | 104% | 93% | 96% |
| ENDGAME STATUS | |||
| Keep open/maintain | 100% | 97% | 94% |
| Close/freeze/lump sum | 95% | 89% | 90% |
| Buy-in/buyout | 104% | 92% | 91% |
| Continue to manage | 105% | 90% | 87% |
Asset Allocation
| DOMESTIC EQUITY | INT’L EQUITY | ALTER– NATIVES | FIXED INCOME | CASH | |
| ALL 2015 RESPONDENTS | 20% | 20% | 18% | 41% | 1% |
| CURRENT PLAN STATUS | |||||
| Open | 21% | 23% | 21% | 33% | 2% |
| Frozen | 24% | 14% | 10% | 51% | 1% |
| Closed | 17% | 18% | 19% | 45% | 1% |
| ENDGAME STATUS | |||||
| Keep open/maintain | 19% | 24% | 20% | 35% | 2% |
| Close/freeze/lump sum | 23% | 17% | 12% | 45% | 2% |
| Buy-in/buyout | 14% | 18% | 16% | 50% | 2% |
| Continue to manage | 20% | 15% | 14% | 49% | 1% |
Average Fixed-Income/Liability Duration (in Years)
| FIXED-INCOME DURATION | LIABILITY DURATION | |
| ALL 2015 RESPONDENTS | 12.3 | 15.6 |
| CURRENT PLAN STATUS | ||
| Open | 10.3 | 17.2 |
| Frozen | 12.0 | 14.3 |
| Closed | 14.7 | 14.7 |
| ENDGAME STATUS | ||
| Keep open/maintain | 10.6 | 17.2 |
| Close/freeze/lump sum | 12.9 | 14.8 |
| Buy-in/buyout | 13.5 | 14.3 |
| Continue to manage | 12.3 | 14.7 |
Fixed-Income Portfolio Composition
| SHORT DURATION | CORE | CORE PLUS | HIGH YIELD | GLOBAL | LONG DURATION | ABSOLUTE RETURN | OTHER | |
| ALL 2015 RESPONDENTS | 3% | 12% | 6% | 5% | 2% | 63% | 3% | 6% |
| CURRENT PLAN STATUS | ||||||||
| Open | 5% | 16% | 11% | 5% | 4% | 47% | 3% | 10% |
| Frozen | 1% | 15% | 4% | 5% | 1% | 73% | 1% | 1% |
| Closed | 1% | 6% | 2% | 3% | 1% | 78% | 5% | 3% |
| ENDGAME STATUS | ||||||||
| Keep open/maintain | 3% | 13% | 11% | 5% | 3% | 50% | 5% | 10% |
| Close/freeze/lump sum | 2% | 16% | 8% | 7% | 2% | 61% | 1% | 2% |
| Buy-in/buyout | 2% | 11% | 0% | 4% | 2% | 80% | 1% | 1% |
| Continue to manage | 1% | 18% | 7% | 5% | 1% | 61% | 4% | 2% |
Plan Payment Profile (as a Percentage of Liabilities)
| 0-5 YEARS | 5-20 YEARS | 20+ YEARS | |
| ALL 2015 RESPONDENTS | 20% | 47% | 33% |
| CURRENT PLAN STATUS | |||
| Open | 22% | 42% | 36% |
| Frozen | 17% | 51% | 31% |
| Closed | 20% | 48% | 32% |
| ENDGAME STATUS | |||
| Keep open/maintain | 22% | 43% | 34% |
| Close/freeze/lump sum | 21% | 53% | 28% |
| Buy-in/buyout | 21% | 47% | 32% |
| Continue to manage | 18% | 51% | 31% |
Use of Derivatives
| CURRENTLY USE DERIVATIVES | DON’T USE, BUT PLAN TO | DON’T USE OR PLAN TO | |
| ALL 2015 RESPONDENTS | 70% | 8% | 22% |
| CURRENT PLAN STATUS | |||
| Open | 63% | 10% | 27% |
| Frozen | 81% | 0% | 19% |
| Closed | 71% | 11% | 18% |
| ENDGAME STATUS | |||
| Keep open/maintain | 62% | 8% | 30% |
| Close/freeze/lump sum | 69% | 12% | 19% |
| Buy-in/buyout | 85% | 8% | 8% |
| Continue to manage | 77% | 3% | 20% |
