Corporate DB Plan Funded Status Improves Again
October brought good news for corporate pension plans, a recent study suggests. A monthly measurement of the 100 largest DB plans says their funding improved markedly, and that October marks the second consecutive month that their funding status has gotten better.
According to the Milliman 100 Pension Funding Index
, those plans’ funded status improved by $7 billion since Sept. 30. They were 84.3% funded by Sept. 30, and that improved to 84.7% by Halloween, and their collective deficit fell to $266 billion. The market value of the plans’ assets improved by $12 billion in October and their asset valuation rose to $1.476 trillion.
The improvements in October are part of a longer-term trend, Milliman says, noting that the plans’ funded status has improved by $32 billion since Aug. 31. Furthermore, cumulative investment gains for the 100 largest pension plans are up 9.57% for YTD 2017, Milliman says, and their funded status has improved by more than five percentage points in the last year, when it stood at 79%.
The good news was balanced, however, by a $5 trillion increase in the plan’s collective pension liabilities in October, growing from $1.737 trillion to $1.742 trillion.