The funded status of the 100 largest corporate pension plans shot to its highest point since Milliman started tracking it 13 years ago.
An 87-basis-point surge in interest rates and an 11.2 percent investment gain in 2013 powered a historic year in corporate pension funded status improvement, gaining $318 billion for the year.
Liabilities decreased by $190 billion and assets increased by $128 billion. Milliman highlighted that 2013 was the first year since 2007 where liabilities decreased and assets increased in the same year. The funded ratio was 95.2 percent as of Dec. 31, 2013, an 18-percentage-point gain over the 77.2 percent funded ratio at the beginning of 2013.
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