Happy New Year from KCS! We wish for you an incredible 2017, one filled with great health, family, friends, and prosperity.
We are pleased to share with you the latest edition of the KCS Fireside Chat series.
In this article we highlight our process to become more liability aware within a defined benefit plan. 2016 was a good year for DB pensions, as returns were stronger and liabilities weaker, as the present value of liabilities fell when interest rates rose during the second half of the year. If rates were to continue to rise and returns were to be somewhat normal, DB plans could witness improved funded ratios in 2017. As we discuss in our newsletter, plan sponsors should take action to secure the improved funding status.
2016 was our fifth full year in business, and we thank all of our clients for making it such a wonderful year for KCS. In addition, we also want to thank the many organizations that support us on a day-to-day basis, especially Ryan ALM and CMIT. Lastly, we continue to embrace our mission to help preserve DB plans. We know that it is an incredible challenge given the rapid demise of these offerings, but we will continue to fight the good fight!