US. Interest Rates Boost Pension Funding in September

The funded status of the 100 largest corporate defined benefit plans in the U.S. rose to 114.5% in September, up from 112.2% in August, according to Milliman Inc.’s Pension Funding Index. A 47-basis-point increase in benchmark corporate bond interest rates during the month to 6.47% resulted in a $54 billion reduction in pension liabilities, helping to offset a negative 2.21% investment return. Discount rates have increased by more than 100 bps over the past year and have reached levels not...