The funding deficit for the nation's 100 largest corporate pension plans grew in September, increasing by $124 billion, according to Milliman's 100 Pension Funding Index. This was the largest monthly drop in the plans' funded status in 11 years, the report said.
The large drop came because of investment losses and a decrease in corporate bond interest rates that are used to value pension liabilities.
"As of Sept. 30, the funded ratio plummeted to 72.8 percent from 79.3 percent at the end of August. The funded status deficit increased from $315 billion to $439 billion. The funded status has eroded by more than $252 billion since June 30. The third calendar quarter of 2011 has been the most significant three-month decline since the start of the financial crisis during the last quarter of 2008," the report concluded.
Complete your profile to continue reading and get FREE access to BenefitsPRO, part of your ALM digital membership.
Your access to unlimited BenefitsPRO content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Breaking benefits news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical converage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
