Pension plan funding levels down slightly in November: Milliman

The funding levels of pension plans sponsored by large publicly held U.S. employers dipped slightly in November, Milliman Inc. said in an analysis released Wednesday.

Defined benefit plans offered by the 100 U.S. employers with the largest pension programs were on average 75% funded as of Nov. 30. That's down from 75.5% in October but an increase from September, when the funded ratio was 72.8%, the low point for 2011. The peak funded ratio this year was in March, when plans enjoyed an average funded ratio of 87.7%. At the end of 2010, the plans' average funded ratio was 84.1%.

“As 2011 draws to a close, it seems increasingly likely that this will be a lost year for pension funding,” John Ehrhardt, a Milliman principal in New York, said in a statement.

“In the coming weeks, plan sponsors will be closely monitoring both the discount rate and the market value of these assets, with the hope of starting off 2012 with at least some upward momentum,” Mr. Ehrhardt added.

In all, the plans’ funded status fell by $7.80 billion in November, with the market value of plan assets dipping to $1.214 trillion in November from $1.220 trillion in October. The value of plan liabilities stayed nearly the same, inching up to $1.617 trillion from $1.616 trillion.