The aggregate funded ratio for US corporate pension plans declined to 74.3 per cent for the month of January 2015, according to Wilshire Consulting.
The decrease in funding was the result of a greater increase in liability value versus a smaller increase in asset value.
“We estimate that overall the funded ratio for the sample plan decreased by 3.5 per cent from 77.8 per cent to 74.3 percent in January. This decrease was driven by the larger increase in liability value of 5.7 per cent versus the 0.9 per cent increase in asset value. The asset result is due to positive returns for fixed income assets, while the liability value increased due to falling corporate bond yields,” says Ned McGuire, vice president and member of the Pension Risk Solutions Group of Wilshire Consulting.
