What Do Rising Interest Rates Mean for Multiemployer Pension Plans?

Thursday, June 29-Thursday, June 29, 2023

Free to International Foundation and ISCEBS members

The session will look at how the recent increases in inflation and interest rates affect multiemployer pension plans. We will look back at the discount rate assumptions used by multiemployer actuaries for funding purposes and compare them to inflation, yields on fixed interest investments, equity expectations and historical asset allocation trends. The session will then examine the potential future impact of rising interest rates on discount rates, liability measurements and withdrawal liability as well as other nonactuarial aspects such as benefit adequacy and future collective bargaining. Finally, the session will conclude with offering how rising interest rates may provide opportunities to de-risk multiemployer pension plans.