The funded status of very large pension plans sponsored by public companies rose in May as rising interest rates lowered the value of plan liabilities, according to a Milliman Inc. survey released Thursday.
Defined benefit plans offered by U.S. employers with the 100 largest pension programs were an average of 84.1% funded as of May 31, up from 82.6% funded as of April 30.
At the end of May, the plans had $1.477 trillion in assets and $1.756 trillion in liabilities, resulting in a funding deficit of $279 billion. That is a decrease of $32 billion compared with the end of April when the funding shortfall was $311 billion.
“The second quarter of 2015 has reversed the losses we saw in the first quarter,” John Ehrhardt, a Milliman principal and consulting actuary in New York said in a statement.
“For the year these pensions have now experienced a $50 billion decrease in the funded status deficit, thanks to rising interest rates,” Mr. Ehrhardt added.
The number of single-employer pension plans insured by the Pension Benefit Guaranty Corp. continues to tumble.