Large employers' pension plan funding dips in July

The funded status of pension plans sponsored by large employers dipped in July, as falling interest rates boosted the value of plan liabilities, according to a Mercer L.L.C. analysis released Wednesday.

On average, pension plans sponsored by companies in the S&P 1500 were 83% funded as of July 31 down from 84% as of June 30, but still significantly higher compared to the end of January when the plans were 74% funded, on average.

“The solid market returns seen in July were more than offset by a decrease in discount rates over the month, which highlights just how sensitive these plans are to rate movements,” said Jonathan Barry, a partner with Mercer's retirement business in Boston.

In the aggregate, the Mercer analysis found that the plans' funding deficit rose by $33 billion in July to $379 billion.

In all, the plans, at the end of July had $1.84 trillion in assets and $2.22 trillion in liabilities.