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.
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