SEI 2008 FAS 87 Research Series
08 December 2008 by Jonathan Waite
Without question, 2008 was one of the most volatile and loss ridden years for pension investments in recent history. The extent of the losses caries across companies and industries but almost all plan sponsors saw a significant downturn in the plan's overall funded status, which flows into reporting triggers and into cost projections. Interest rates, which impact liabilities and assets, have varied during the year and spreads have changed. Return seeking assets have also varied in value during the year directly impacting the assets underlying the pension plans. While funding status had generally improved during 2007, it is widely assumed that 2008 has not only eliminated the improvement but further widened the gap between assets and liabilities.
FAS 87 Research Paper (PDF)