Mercer's newest study of the corporate defined benefits landscape offers a grim picture of the industry, as 2011′s funding deficits dropped back to levels felt in 2009, even with a record $70 billion added as contributions during the year.
The report, "How Does Your Retirement Program Stack Up – 2012," suggests that the funded status of the S&P 1500′s pension plans has continued on a downward slide. In Dec. 2010, the number was 81 percent; a year later, it had dropped to 75 percent and as of July 31, 2012, the plans hit a record low of 70 percent, a $689 billion shortage overall.
The major contributing factor, the survey says? Median asset return for 2011 was only 2.9 percent, while it had been 12.1 percent in 2010 and 18.5 percent in 2009.
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