Funding of big pension plans dips in March
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The funded status of very large pension plans sponsored by public companies dipped in March as a slight decline in interest rates boosted 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 81% funded as of March 31, down from 81.2% as of Feb. 28.
At the end of March, the plans had $1.483 trillion in assets and $1.832 trillion in liabilities, resulting in a funding deficit of $349 billion. That is an increase of $6 billion compared with the end of February, when the funding shortfall was $343 billion.
“Last month these pensions continued to languish in the low-interest-rate doldrums,” John Ehrhardt, a principal and consulting actuary in Milliman’s New York office, said in a statement.
“Whether or not rates climb between now and the end of the year will likely determine whether or not these pensions can meaningfully reduce the funded status deficit before yearend,” Mr. Ehrhardt, added.
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