Large pension plan funding improves to 83.3% in October
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Aided by strong investment returns, the funded status of very large pension plans rose in October, according to a Milliman Inc. survey released Monday.
Defined benefit plans offered by U.S. employers with the 100 largest pension programs were an average of 83.3% funded as of Oct. 31, up from 81.7% funded as of Sept. 30
“October was a great month for these pensions,” John Ehrhardt, a Milliman principal and consulting actuary in New York, said in a statement.
Still, barring strong market returns for the remainder of 2015, plan funding will show only a small improvement this year.
“Overall funded status has improved by only 1.8% this year, and this would be worse if it weren't for interest rates inching in the right direction to reduce pension liabilities,” Mr. Ehrhardt said.
At the end of October the plans had $1.429 trillion in assets and $1.716 trillion in liabilities, for a deficit of about $287 billion. That is down about $25 billion from the end of September, when the funding shortfall was about $312 billion.
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