The aggregate funded ratio for US corporate pension plans increased by an estimated 0.6 percentage points month-over-month in April to end the month at 92.9 per cent, according to Wilshire.
Through its suite of Outsourced Chief Investment Officer (OCIO) and advisory services, Wilshire assists in ensuring secure and safe retirements for millions of Americans, including those participating in some of the nation’s largest corporate and public retirement plans.
The monthly change in funding resulted from a 2.2 percentage point increase in asset values partially offset by a 1.7 percentage point increase in liability values. The aggregate funded ratio is estimated to have increased by 6.1 and 12.6 percentage points year-to-date and over the trailing twelve months, respectively.
“April’s increase in funded ratio was driven by positive monthly returns for nearly all asset classes, led by the Wilshire 5000 Total Market IndexSM, due to optimism around states beginning to reopen and improving economic data,” says Ned McGuire, Managing Director, Wilshire. “April’s funded ratio is at its highest level since September 2018.”