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Large employers' pension plan funding dips in July

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The funded status of pension plans sponsored by large employers dipped in July, as falling interest rates boosted the value of plan liabilities, according to a Mercer L.L.C. analysis released Wednesday.

On average, pension plans sponsored by companies in the S&P 1500 were 83% funded as of July 31 down from 84% as of June 30, but still significantly higher compared to the end of January when the plans were 74% funded, on average.

“The solid market returns seen in July were more than offset by a decrease in discount rates over the month, which highlights just how sensitive these plans are to rate movements,” said Jonathan Barry, a partner with Mercer's retirement business in Boston.

In the aggregate, the Mercer analysis found that the plans' funding deficit rose by $33 billion in July to $379 billion.

In all, the plans, at the end of July had $1.84 trillion in assets and $2.22 trillion in liabilities.

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