black and blue dial labeled Pension (Photo: Shutterstock)

The increase in interest rates seen in 2022 has improved pension funded status and provided attractive yields for sponsors wanting to de-risk by increasing their allocation to fixed income, according to a new report.

A decade of volatile stock markets, including markets during a once in 100-year pandemic, reveals growth in U.S. corporate pension funded status. MetLife Investment Management (MIM), the institutional asset management business of MetLife, estimates that as of Nov 7, 2022, the average U.S. corporate pension funded status rose to 106.3% — the highest in 10 years. The quarter-end average was 104.7%, which is 4.0% above the end of the second quarter.

 

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