The aggregate funded ratio for US corporate pension plans decreased by 0.7 percentage points to end the month of February at 88.2 per cent and up 6.1 percentage points over the trailing twelve months, according to Wilshire Consulting.
Wilshire Consulting 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 3.3 per cent decrease in liability values, which was more than offset by a 4.1 per cent decrease in asset values. Despite February’s decline, the aggregate funded ratio is up 3.6 and 6.1 percentage points year-to-date and over the trailing twelve months, respectively.
“February’s month end funded ratio is the second highest in over four years despite the decline,” says Ned McGuire (pictured), Managing Director and a member of the Pension Risk Solutions Group of Wilshire Consulting. “February’s decrease in funding was driven by the decline in nearly all asset classes, especially global equities, offsetting the decline in liability values caused by an over 20 basis points increase in bond yields used to value pension liabilities” he added.
