Pension Funding Index, August 2011

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By John W. Ehrhardt, Zorast Wadia | 08 August 2011

The funded status of the 100 largest corporate defined benefit pension plans dropped by $68 billion during July 2011, as measured by the Milliman 100 Pension Funding Index (PFI). The notable increase in the funded status deficit was primarily due to a substantial decrease in corporate bond interest rates that are the benchmarks used to value pension liabilities.

The funded ratio fell from 87.0% to 83.0% and the funded status deficit increased from $186 billion to $254 billion, the largest deficit increase of the year, and the 10th largest since the start of the Milliman 100 PFI in 2000.

Read the latest Pension Funding Index »