The aggregate funded ratio for U.S. corporate pension plans losta bit of ground in October, according to investment consulting andservices firm Wilshire Consulting.

While asset values increased, they were outpaced by liabilityincreases, resulting in the funded ratio falling to 85.0 percent.

“We estimate that overall, the asset value increased by 1.4percent due to positive returns for most asset classes, while theliability value increased by 1.7 percent during the month due tofalling corporate bond yields,” stated Jeff Leonard, managingdirector, Wilshire Associates, and head of the Actuarial ServicesGroup of Wilshire Consulting, in a statement.

The aggregate figures represent an estimate of the combinedassets and liabilities of corporate pension plans sponsored byS&P 500 companies with a duration that is in line with the CitiGroup Pension Liability Index — Intermediate. The funded ratio isbased on the CPLI — Intermediate liability, with service cost,benefit payments and contributions in line with Wilshire’s 2014corporate funding study. The most current month-end liabilitygrowth is estimated using the Barclays Long Aa+ U.S. CorporateIndex.

The assumed asset allocation was:

• 33 percent in U.S. equities;
• 22 percent in non-U.S. equities;
• 17 percent in core fixed income;
• 26 percent in long-duration fixed income; and
• 2 percent in real estate.

“Year-to-date, the funded ratio for the sample plan hasdecreased by 4.8 percent from 89.8 percent to 85.0 percent. Thisdecrease was driven by the larger increase in liability value of11.4 percent versus the 5.3 percent increase in asset value,”Leonard continued.

See also: Corporatepension plan funding lost $22 billion in August