Corporate pensions fell further into the red in December, according to a new report.
Global consulting and actuarial firm Milliman discloses this finding in a December update on Pension Funding Index. The PFI consists of 100 of the nation’s largest defined benefit pension plans.
Milliman discloses that corporate defined benefit plans experienced a $19 billion increase in pension liabilities and a $3 billion decrease in asset value, resulting in a $22 billion increase in the pension funded status deficit and a funded ratio of 83.6 percent. For the year, despite market returns of $81 billion, pensions suffered a $105 billion increase in the pension funded status deficit. Fueling the rise was a $186 billion increase in liabilities, as interest rates fell to a historic low at year-end.