Agilis Suggests Strong Outlook for Pensions in 2024

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Jan 17, 2024, 10:00 ET

2024 presents a number of opportunities for plan sponsors according to leading advisor group

BOSTON, Jan. 17, 2024 /PRNewswire/ -- Agilis Partners LLC, a leading investment, actuarial and risk management group, announced key research-based insights looking back on pension activity in 2023 and the key themes expected to shape the pensions landscape in 2024.

According to Agilis, in 2023:

Discount rates rose steadily, but declined sharply the last two months of the year to actually end the year lower than where they started;
Despite the fall in discount rates, strong market returns generally left pension plans better funded at the end of the year compared to the beginning of the year.

"The volatility in discount rates over the last two months of the year, highlights the need for plan sponsors to carefully watch the quick changes in the market to take advantage of funded status increases that may come and go in the blink of an eye," said Michael Clark, Managing Director at Agilis. "Going into 2024, plan sponsors will want to consider continued de-risking strategies, potential plan terminations, and investment strategies that can help them improve their overall funded status positions."

In a pensions outlook for 2024, Agilis expects:

Lump sum campaigns should be attractive for most plan sponsors to consider and there are good economic reasons to look at how to apply this towards certain active employees and in-pay retirees;
Pension risk transfers via annuity buy-outs are going to continue to be attractive;
Plan terminations should pick up substantially for frozen plans.

"2024 is going to present a number of opportunities for plan sponsors," said Tom Cassara, CEO of Agilis. "Plan terminations and retiree carveouts continue to remain attractive. First quarter annuity purchases are already looking strong, and additional insurers are considering entering the pension risk transfer market. This would increase competition, open up capacity, and drive attractive pricing for plan sponsors looking to derisk their pension plans in the future."

Agilis partners with organizations to design and implement custom solutions for their investments and liabilities while properly managing risk. For more information please visit https://agilis.llc/resources/.

About Agilis

Agilis provides actuarial and investment consulting using a strategic approach to create innovative solutions for our clients, leading them on the journey through implementation. Focused on solutions entailing outsourced CIO (OCIO), actuarial and investment consulting, derivatives management, specialty investment management strategies, pension administration services, annuity buyouts and plan terminations, and pooled employer 401(k) consulting, we find dynamic solutions that create financial momentum for our clients and create breakthrough strategies to seize growth opportunities. For more information, please visit https://agilis.llc/.

SOURCE Agilis