November 2024
08Nov

US. Corporate pension funding improves in October after discount rates rise for the first time since April

Milliman analysis: Corporate pension funding improves in October after discount rates rise for the first time since April Milliman PFI funded ratio climbs to 103.4% after discount rates increase by 35 basis points Milliman, Inc., a premier global consulting and actuarial firm, today released the results of its latest Milliman 100 Pension Funding Index (PFI), which analyzes the 100 largest U.S. corporate pension plans. During October, the Milliman 100 PFI plans’ funded ratio improved from 102.5% at the end of September to...

November 8, 2024
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October 2024
15Oct

US. Most Corporate Pensions Saw Funding Dip in September

U.S. corporate pension funding ratios dipped slightly in September, as falling yields drove liabilities higher than could be offset by strong gains in equities, according to most of the country’s largest plan consultants. The consensus of slight declines in pension funding status comes after a month in which the Federal Reserve cut interest rates for the first time since the COVID-19 pandemic and its campaign of hikes to combat inflation, which began in 2022. Pension liabilities, driven in part by market interest...

October 15, 2024
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09Oct

US. A Little Bit of Everything in September for DB Plans

September is a little bit of everything. It’s summer, it’s fall. Baseball season, football season. In like manner, the funding status of private-sector pension plans showed slight progress — or slight decline — this September, depending on the analysis. But the common theme is that there was relative stability. This marks the second consecutive month in which the funding of private-sector pension plans had mixed results. They fared similarly in August, when a number of analyses diverged on whether private-sector pension...

October 9, 2024
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04Oct

Reverse Mortgages, Financial Inclusion, and Economic Development: Potential Benefit and Risks

By Peter Knaack, Margaret Miller & Fiona Stewart This paper examines the state of reverse mortgage markets in selected countries around the world and considers the potential benefits and risks of these products from a financial inclusion and economic benefit standpoint. Despite potentially increasing demand from aging societies—combined with limited pension income—a series of market failures constrain supply and demand. The paper discusses a series of market failures on the supply side, such as adverse selection, moral hazard, and the costly...

October 4, 2024
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04Oct

U.S. corporate pension fund surpluses grew again in September

U.S. corporate pension funding ratios remained well above 100% at the end of September as investment returns continue to outpace rising liability values, according to two new reports. First, Wilshire Advisors estimated the aggregate funding ratio of U.S. corporate plans reached 101.6% as of Sept. 30, an increase of 0.3 percentage points above the 101.3% funding ratio newly estimated by the firm as of Aug. 31. "September's funded status improved due to continued increases in asset values, with most asset classes...

October 4, 2024
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02Oct

Canadian defined benefit pension plans show decreased funded levels in Q3: Aon

- Aon plc (NYSE: AON), a leading global professional services firm, announced today that the aggregate funded ratio for Canadian pension plans in the S&P/TSX Composite Index percent compared to 106.9 percent at the end of the second quarter, according to the Aon Pension Risk Tracker. The Aon Pension Risk Tracker calculates the aggregate funded position on an accounting basis for companies in the S&P/TSX Composite Index with defined benefit plans. To access Aon's interactive tracker, which dates to 2013, click here. Key findings for the quarter...

October 2, 2024
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September 2024
25Sep

UK. TPR data shows improvements in DB pension funding

The statistics show that overall, 47% of schemes reported a surplus on the Technical Provision (TP) funding basis in tranche 17 – schemes with effective valuation dates from 22 September 2021 to and inclusive of 21 September 2022 – a significant increase on the 32% in surplus in their previous valuation cycle (tranche 14). The average funding level had increased by 5% (97% in tranche 17 (median: 99%), compared to 92% in tranche 14 (median: 93%)) and recovery plan lengths...

September 25, 2024
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11Sep

US. As Pension Funding Levels Fell in 2022, Higher Contributions Helped States Manage Debt

From fiscal year 2021 to 2022, the reported funding gap for state pension plans—the disparity between promised benefits and available assets—jumped by $439 billion to $1.27 trillion. The increase, largely fueled by investment losses, highlights how volatile financial markets continue to expose state and local governments to risk. Yet, despite poor investment returns, in 2022, 49 states still contributed enough to their pension plans to meet a key target, the net amortization benchmark, which measures whether employers’ payments are sufficient...

September 11, 2024
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August 2024
01Aug

Funding ratios of German corporate schemes hit unprecedented level

The funding ratios of pension schemes of German companies listed on the DAX and MDAX indices have climbed to an unprecedented level in the first half of this year, according to the latest Pension Finance Watch published by WTW. The funding ratio of pension plans of the largest firms listed on the DAX index improved to 84% in H1 2024, up from 79.1% at the end of 2023, WTW’s figures show. The funding ratio of pension plans of companies listed on...

August 1, 2024
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July 2024
17Jul

US. Rallying Stock Market May Help Public Pensions Reduce Shortfall This Year, Study Finds

KEY TAKEAWAYS State and local government-sponsored employer pension funds are projected to earn a 7.4% market return this year. However, these pension funds still face a long-run funding shortfall of more than $1 trillion, according to a new study by a nonprofit think tank working with the public retirement system. Public pension funds have increased their investments in hedge funds, private capital, and real estate to boost returns. It’s been a good year for pension funds. While public pension funds...

July 17, 2024
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