The aggregate funded ratio for US corporate pension plans increased by 1.7 percentage points to end the month of April at 88.9 per cent, which is up 6.0 percentage points over the trailing twelve months, according to Wilshire Consulting.
The monthly change in funding resulted from a 2.2 per cent decrease in liability values partially offset by a 0.3 per cent decrease in asset values. The aggregate funded ratio is up 4.3 and 6.0 percentage points year-to-date and over the trailing twelve months, respectively.
“April reversed the two month decline in funded ratios as interest rates rose and equity values turned positive,” says Ned McGuire, Managing Director and a member of the Pension Risk Solutions Group of Wilshire Consulting. “April’s 1.7 percentage point increase in funding offset the total declines in funded ratio from February and March. The improvement in funding was led by a decline in liability values that resulted from a nearly quarter point increase in the bond yields used to value pension liabilities.”