Help

BI’s Article search uses Boolean search capabilities. If you are not familiar with these principles, here are some quick tips.

To search specifically for more than one word, put the search term in quotation marks. For example, “workers compensation”. This will limit your search to that combination of words.

To search for a combination of terms, use quotations and the & symbol. For example, “hurricane” & “loss”.

Login Register Subscribe

Pension plan funding up slightly in June: Mercer

Reprints
Pension plan funding up slightly in June: Mercer

Helped by small gains in the equities markets and higher interest rates, the funded status of pension plans sponsored by large companies rose slightly in June, according to a Mercer L.L.C. survey released Monday.

On average, pension plans sponsored by companies in the S&P 1500 were 85% funded as of June 30, up from 84% at the end of both May and April.

The plans' aggregate funding deficit of $330 billion at the end of June, is $13 billion lower compared to the plans' $343 billion deficit as of May 31.

Still, due to a fall in interest rates, which are used to value plan liabilities, during much of 2014, plan underfunding has climbed sharply this year.

For example, the $330 billion funding deficit at the end of last month compares with a $236 billion deficit at the start of 2014.

“Even with the very positive returns we have seen in most equity markets this year, overall, U.S. corporate pension plans have lost ground since the beginning of the year due to a 50-60 basis point drop in discount rates,” Jonathan Barry, a partner in Mercer's retirement business in Boston, said in a statement.

Read Next