Large pension plans' funded status flat in August: Mercer
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The funded status of pension plans sponsored by large employers remained flat in August as rising interest rates, which reduced the value of plan liabilities, largely offset equity market losses, according to a Mercer L.L.C. analysis released Wednesday.
On average, pension plans sponsored by companies in the S&P 1500 were 89% funded as of Aug. 31, unchanged from July but up from 74% at the end of 2012.
“While there was no significant change in the funded ratio, there was a lot of volatility underpinning both the asset and liability numbers this month,” Jonathan Barry, a partner in Mercer's retirement consulting group in Boston, said in a statement.
In aggregate, the plans' funding deficit at the end of August was $213 billion, virtually unchanged from the end of July but sharply lower than the record deficit of $557 billion as of Dec. 31, 2012.
