The aggregate funded ratio for US corporate pension plans increased by 0.4 percentage points to end the month of October at 84.7 per cent, up 7.4 percentage points over the trailing twelve months, according to Wilshire Consulting.
The monthly change in funding resulted from a 0.9 per cent increase in asset values partially offset by a 0.5 per cent increase in liability values. The aggregate funded ratio was up 3.8 percentage points year-to-date.
“October marks the second consecutive month of increases in funded ratios and the seventh month for the year,” says Ned McGuire (pictured), Managing Director and a member of the Pension Risk Solutions Group of Wilshire Consulting. “October’s improvement in funding was driven by an increase in public equity market, which pushed asset values higher. October marks the twelfth consecutive month of gains for the Wilshire 5000 Total Market Index, its longest such streak in more than thirty years,” he adds.