Key Takeaways
- Funded ratios likely to fall for fiscal 2023 as market continues pullback, according to S&P Global Ratings’ current economic forecast.
- High inflation could affect pension funding as sponsors experience budgetary stress, but is unlikely to directly alter funded ratios in 2023.
- Retiree health care plans lacking prefunding may see rapid cost increases.
- Pension obligation bond (POB) issuance is expected to remain low as interest rates remain high.
- Lagging payroll growth could lead to compounding cost pressure.
31 Jan, 2023