This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

SEI Releases 2011 Update Of Research On Pension Accounting Disclosure Assumptions

OAKS, Pa., Dec. 16, 2010 /PRNewswire / -- According to an annual research study on pension accounting released today by SEI (Nasdaq: SEIC), the range of discount rates being used by defined benefit plan sponsors continues to widen compared to years past. The database of plan sponsors used for the research shows a 161 basis-point range of discount rates used for 2009 pension disclosure – a 20 basis-point increase in range from the previous year. Companies can use the study as guidance for setting the discount rate and return on asset (ROA) assumptions plan sponsors will use for 2010 year-end disclosures.

"Last year most companies lowered their discount rate; however, some plan sponsors actually increased it, thus widening the range," said Jon Waite, Director, Investment Management Advice and Chief Actuary for SEI's Institutional Group. "The wide range of discount rates suggests diversity among companies in measurement date, liability structure, investment philosophy and willingness to be aggressive when setting rates."

SEI's research outlines how some plan sponsors and auditors are interpreting the events in the current marketplace. Based on this analysis, and assuming no change during December 2010, plans with a December 31 measurement date should consider decreasing their discount rates. The paper also shows that of the 662 plan sponsors in the database reporting ROA changes, more than half (61 percent) did not lower their ROA between 2008 and 2009, while a significant portion (39 percent) decreased it. This demonstrates the forward looking basis of the ROA assumption, especially given the events of recent capital market experiences.  

Now in its ninth year, this research series has drawn on SEI's industry-leading knowledge around defined benefit accounting to provide assumptions that can serve as a barometer in this complicated area. Data is derived from the 2009 SEI Plan Sponsor Accounting Database, which consists of data from Standard & Poor's Institutional Market Services database, as well as proprietary analysis created by SEI's Institutional Group.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG

Markets

Chart of I:DJI
DOW 17,689.86 -56.12 -0.32%
S&P 500 2,103.84 -4.79 -0.23%
NASDAQ 5,128.2810 -0.5040 -0.01%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs