Pension Funding Index, January 2011


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The funded status of the largest 100 U.S. corporate defined benefit pension plans in December brought an overall negative year to an optimistic close with an increase of $44 billion. But the impact of historically low interest rates drove the funded status during 2010 overall down by $49 billion. If the Milliman 100 PFI companies achieve their 8.1% median 2010 asset return and if the current discount rate of 5.32% are maintained during 2011 and 2012, the funded status of the surveyed plans would increase, resulting in a projected pension deficit of $261 billion (funded ratio of 82.0%) by the end of 2011 and a projected pension deficit of $208 billion (funded ratio of 85.9%) by the end of 2012.

Read the latest Pension Funding Index »