How rising interest rates are impacting defined benefit plans

Rising rates in the US have made an indelible mark on most defined benefit (DB) plans’ funded status and risk posture.

As a result, plan sponsors appear to be gravitating to one of two distinct camps: One that is committed to long-term plan sustainability, and the other that’s looking at terminating plans and transitioning to a defined contribution (DC) arrangement.

In the first of three reports that explore the 2023 CFO Dive/Mercer survey results, we delve into the two camps that have emerged in response to soaring interest rates. Download now to learn more about:

Considerations when retaining or terminating a DB plan
Funded-status improvements in 2022
The impact of flexibility on pension plan funding

Our report is based on insights from 152 senior financial executives who manage an organization’s DB or pension plan across a wide range of industries and plan sizes.

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Learn more in our report titled Next Steps in Pension Risk Management: Two Emerging Camps

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