Pension Funding Index, December 2012

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By John W. Ehrhardt, Zorast Wadia | 01 January 0001

Pension liabilities of the 100 largest corporate defined benefit pension plans decreased by $28 billion in November while corresponding assets increased by $5 billion, bringing the Milliman 100 Pension Funding Index (PFI) funded status deficit to $466 billion and a 74.0% funded ratio. The November funded ratio still lags the year-end 2011 value of 78.7% with only one month left in 2012 to achieve a neutral change year to year.

November’s funded status improvement was primarily due to an increase in the corporate bond interest rates that are the benchmarks used to value pension liabilities. As of November 30, 2012, the funded ratio climbed to 74.0%, up from 72.6% at the end of October 2012.

Read the latest Pension Funding Index »