While 2019 was a banner year for returns, low interest rates prevented plan sponsors from meaningfully improving their funded states.
Recent and near-future gains in funded status aside, plan sponsors should formulate policies to address likely higher minimum contributions going forward.
Moody's predicts unfunded liabilities will increase by 40% to $1.75 trillion over the next two fiscal years amid weak investment performance.
Annual returns on equity and fixed income investments will be dragged down by contracting margins and lower global GDP growth, says McKinsey.
