November 2023
16Nov

U.S. public pension funding dips again in October – Milliman

The overall estimated funding ratio of the 100 largest U.S. public pension plans declined for the third month in a row in October, once again due to negative market performance, according to the Milliman 100 Public Pension Funding index. The estimated ratio fell to 71.4% as of Oct. 31 from 73.2% a month earlier, driven by an estimated aggregate investment return of -1.9% during the period, with an estimated range of -2.8% to -1.1%. With the third straight month of negative...

November 16, 2023
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14Nov

US Corporate Pension Funding Status Keeps Climbing

The funding status of U.S. corporate pension plans increased in October, largely due to a reduction in liabilities stemming from an increase in discount rates, which were offset by negative investment returns. According to some trackers, pension funding status is at its highest point in decades. Funding Status Increases Fueled by High Interest Rates According to WTW’s pension finance tracker, U.S. corporate pension funding is at its highest level since mid-2001, with the funding ratio of WTW’s benchmark plan increasing 1.1...

November 14, 2023
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07Nov

U.S. corporate pension plan funding ratio climbs to new high for year

The overall funding ratio at the 100 largest U.S. corporate pension plans edged up to 104.2% as of Oct. 31 – a new high for the year, according to the latest Milliman 100 Pension Funding Index released on Nov. 6. The funding ratio was 103.6% at the end of September. An investment return of -2.68% in October, the third consecutive month of losses, was offset by a significant increase in discount rates to 6.2% from 5.84%, which contributed to the gain. Assets...

November 7, 2023
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October 2023
24Oct

U.S. state pension plans’ funding ratios fall in Q3

U.S. state pension plans' aggregate funding ratios fell in the third quarter to the lowest level since the end of 2022, according to Wilshire Advisors estimates. For the quarter ended Sept. 30, the estimated ratio dropped by 3 percentage points from three months earlier to 75.2%, the result of an estimated 3% decrease in asset values exacerbated by an estimated 0.8% increase in liability values. It is the lowest estimated ratio since Dec. 31, when Wilshire estimated an aggregate funding ratio...

October 24, 2023
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20Oct

US Public Pension Funding Poised to Rebound in 2023 Reporting

The aggregate funded ratio for U.S. state and local retirement systems is expected to improve to 78.8% in fiscal 2023 from 75.0% in fiscal 2022 when final numbers are released, according to Equable Institute’s mid-year update to its State of Pensions 2023 report, as unfunded liabilities are forecast to have declined an estimated $200 billion to $1.39 trillion over the year. The funding growth is a turnaround from the previous fiscal year, when the national average funded ratio for U.S. state and...

October 20, 2023
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18Oct

US. Corporate pension funded status drops

The average corporate pension funded status dipped to 104% in September from 104.4% the previous month, based on data tracked by NISA Investment Advisors for its Pension Surplus Risk index. In July, the funded status was 105.4%. NISA's PSRX, which measures the funded status volatility of U.S. corporate pension plans, rose to 6.9% in September. It was the third consecutive monthly increase. The PSRX measures a one standard deviation change in the funded status over a year. Hence, there is about...

October 18, 2023
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10Oct

US Corporate Pension Funding Rises Slightly in September

U.S. corporate pension funding status increased in September, despite a decline in equities. September’s funding status was a return to the norm, following an August that saw pension funding decline for the first time this year.  Insight Investment found that pension funding status improved by one percentage point in August, to 107.5% from 106.5%. Equity losses were offset by a roughly 40 bps increase in discount rates, causing liabilities to decline faster than assets. Assets decreased by 4.5% in September,...

October 10, 2023
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06Oct

U.S. corporate pension funding rises in September on falling liabilities

U.S. corporate pension plan funding ratios increased in September despite a second straight month of negative market returns thanks to falling liability values, according to three new reports. Wilshire Advisors estimated the aggregate funding ratio of U.S. corporate plans increased 0.7 percentage points during the month to 105.3% as of Sept. 30. The increase was driven by the largest drop in liability values since September 2022 that resulted from the continued rise in U.S. Treasury yields, said Ned McGuire, managing director...

October 6, 2023
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03Oct

UK. DB funding levels remain buoyant despite volatility

Pension scheme trustees have been urged to take the time to review their endgame options, after industry analysis revealed that UK defined benefit (DB) funding levels have continued to improve, despite ongoing volatility. Analysis from XPS Pensions found that, despite the Bank of England holding interest rates steady for the first time since late 2021, the aggregate surplus of UK DB pension schemes stood at around £169bn at the end of September. Aggregate scheme assets were also down over the month...

October 3, 2023
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September 2023
26Sep

US Corporate Pensions at Healthiest Level in a Decade, Aon Data Shows

Pension plans for the largest U.S. companies are at their healthiest in over a decade, according to financial services firm Aon (NYSE:AON). The average pension "funded ratio" for public companies in the S&P 500 stock index was 102% as of last Thursday, marking the highest level since at least the end of 2011 when the ratio stood at around 78%. The funded ratio is a measure of a pension's financial health, comparing a company's pension assets against its liabilities. Essentially,...

September 26, 2023
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