Pension Funding Index, October 2014

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By John W. Ehrhardt, Zorast Wadia | 07 October 2014
The funded status of the 100 largest corporate defined benefit pension plans improved by $26 billion during September as measured by the Milliman 100 Pension Funding Index (PFI). The deficit dropped to $253 billion from $279 billion at the end of August, primarily due to an increase in the benchmark corporate bond interest rates used to value pension liabilities. As of September 30, the funded ratio rose to 85.2%, up from 84.1% at the end of August. The projected benefit obligation (PBO), or pension liabilities, decreased by $45 billion during September, lowering the Milliman 100 PFI value to $1.709 trillion from $1.754 trillion at the end of August.