The largest U.S. corporate pension plans’ aggregate funding ratio reached 100% at the end of 2023, according to a new estimate from Willis Towers Watson.

The analysis of pension plan data of 358 Fortune 1000 companies with defined benefit plans estimates the ratio increased from 98% at the end of 2022.

WTW’s estimated pension plan assets totaled $1.19 trillion as of Dec. 31, a decline of 1% from the previous year due to an active year in pension risk transfer transactions and a drop in cash contributions. However, some loss in assets was offset by an estimated return of 10.4% among the pension plans in WTW’s universe.

The loss in assets was offset by a decline in liabilities to an estimated $1.19 trillion at the end of 2023 from $1.23 trillion the year before.

Joanie Roberts, senior director, retirement, at Willis Towers Watson, said in a phone interview that the news of fully funded status is especially welcome news given the volatility of the market going into 2023.

Plan sponsors will likely experience “lower P&L costs in 2024 because of the lower interest that would be paid on their obligations,” Roberts said.

The funding ratios of individual companies’ pension plans will vary based on their investment strategies, but the news of the fully funded aggregate status of companies “is a good development in general for plan sponsors,” said Roberts.

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