Large companies' pension plan funding holds steady in September
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The average funded level of pension plans sponsored by large companies held steady in September as equity market declines offset rising interest rates, which reduced the value of plan liabilities, according to a Mercer L.L.C. survey released Monday.
On average, pension plans sponsored by companies in the S&P 1500 were 84% funded as of Sept. 30, unchanged from August and down from 85% at the end of July.
“Rising interest rates gave us our largest monthly decrease in pension liabilities this year, but unfortunately the reduction in liabilities was largely offset by losses on assets,” Jim Ritchie, a principal in Mercer’s retirement practice in Baltimore said in a statement.
In all, the plans’ aggregate deficit was $352 billion at the end of September, down from $369 billion as of Aug. 31, but up from $340 billion at the end of July.
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