Falling interest rates caused pension liabilities to outpace growth in April.
According to Mercer, the aggregate pension deficit for pension plans sponsored by the S&P 1500 companies grew by $47 billion in April to $419 billion. The funded ratio fell from 82 percent to 80 percent, which is still an improvement over the estimated 74 percent at the end of December 2012.
Despite continued strengthening in equity markets during the month of April, high quality corporate bond rates fell about 21 basis points to 3.65 percent, driving the estimated liabilities up almost 4 percent.
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