The funding ratio of the typical corporate pension plan rose by about 3 percentage points to 95 percent in the fourth quarter of 2013, according to the UBS Global Asset Management US Pension Fund Fitness Tracker.
Overall, 2013 was a very strong year for corporate pension plans, with the average funding ratio rising by about 17 percentage points due to strong investment returns of 4.7 percent, UBS found.
The U.S. equity market finished the year with a major upswing, with the S&P 500 Index recording a 10.5 percent total return over the quarter. UBS also found that the prospect of a U.S. default had virtually no impact on the equity markets, which continued to rise once a bargain was struck.
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