The funded ratio of pension plans sponsored by S&P 1500 companies remained stable in October at 91 percent, according to Mercer.
This funded ratio corresponds to a deficit of $185 billion as of Oct. 31, 2013, up slightly from $182 billion a month ago, Mercer found. This is a significant reduction from the estimated deficit of $557 billion as of Dec. 31, 2012.
Despite volatility in both the equity markets and interest rates due to the government shutdown and debt ceiling talks, the S&P 500 index increased 4.5 percent and yields on high-grade corporate bond rates (which are used to measure liabilities) fell after congress passed the bill to raise the debt ceiling.
Continue Reading for Free
Register and gain access to:
- Breaking benefits news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical converage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
© 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.
