There are mixed signals for private-sector pension plans by several measures. Recent research by Milliman, Inc. shows that plans’ funded status dropped and liabilities grew, but that funding may have begun to turn the corner.
The 100 largest pension programs’ status improved from Sept. 30 to Oct. 31, Milliman reports. The measures were as follows:
Funding
Sept. 30: 81.7%
Sept. 30: $312 billion
The improvement in October is a turnaround from how pensions fared earlier, Milliman says. It says funding fell from 85.5% June 30 to 81.7% Sept. 30. Milliman also reports that in the third quarter of 2015, pension liabilities grew 1% and returns fell 2.5%. It attributed these results to low discount rates, investment losses and increasing longevity.
And the figures for multiemployer plans were not great for the first half of 2015, Milliman says. They were as follows:
Funding
Dec. 31: 80%
June 30: 79%
Deficits in Assets
Dec. 31: $117 billion
June 30: $125 billion
The 100 largest pension programs’ status improved from Sept. 30 to Oct. 31, Milliman reports. The measures were as follows:
Funding
Sept. 30: 81.7%
Oct. 31: 83.3%
Deficits in AssetsSept. 30: $312 billion
Oct. 31: $287 billion
Milliman principal and consulting actuary John Ehrhardt said that pension funds’ funded status overall has improved 1.8% in 2015 so far, and credited interest rates with keeping funding status from being in worse shape.The improvement in October is a turnaround from how pensions fared earlier, Milliman says. It says funding fell from 85.5% June 30 to 81.7% Sept. 30. Milliman also reports that in the third quarter of 2015, pension liabilities grew 1% and returns fell 2.5%. It attributed these results to low discount rates, investment losses and increasing longevity.
And the figures for multiemployer plans were not great for the first half of 2015, Milliman says. They were as follows:
Funding
Dec. 31: 80%
June 30: 79%
Deficits in Assets
Dec. 31: $117 billion
June 30: $125 billion
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