Falling stock prices and interest rates took their toll on the 100 largest U.S. corporate pensions in January, reversing some of the gains made in 2013.
The Milliman 100 Pension Funding Index found that the funding ratio of the plans fell from 95.2 percent to 91.2 percent, which translated to a $67 billion rise in unfunded liabilities to a total of $140 billion.
A decrease in the discount rate, the figure used to calculate future liabilities, from 4.83 percent to 4.55 percent fueled a $60 billion rise in unfunded obligations. The net value of assets fell by $7 billion for the month.
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:
- Critical BenefitsPRO information including cutting edge post-reform success strategies, access to educational webcasts and videos, resources from industry leaders, and informative Newsletters.
- Exclusive discounts on ALM, BenefitsPRO magazine and BenefitsPRO.com events
- Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com
Already have an account? Sign In
© 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.
