The funded status of the 100 largest corporate defined benefit pension plans dropped by $57 billion during June 2012, as measured by the Milliman 100 Pension Funding Index (PFI). The deficit increased from $358 billion at the end of May to $415 billion, the second largest deficit in the 12-year history of the Milliman 100 PFI. In the second financial quarter of 2012, funded status deteriorated by $186 billion.
June’s funded status decline was due to a decrease in corporate bond interest rates that are the benchmarks used to value pension liabilities and investment losses.
Read the latest Pension Funding Index »