A drop in liabilities has improved pension funding ratios for the second quarter of 2015.
That’s according to the UBS Global Asset Management US Pension Fund Fitness Tracker, which found that in Q2 2015 the funding ratio increased to 87 percent for the typical U.S. corporate pension plan.
The incorporation of new mortality tables at the end of last fiscal year saw the funding ratio fall by about six points, according to UBS. But a strong decrease in liabilities in the second quarter brought funding ratios up by about a point.
“It is worth noting that in the absence of the mortality adjustment, the average funding ratio would stand close to 92 percent, the same level it was in the last quarter of 2013,” Robert Guzman, head of pension risk management at UBS Global Asset Management, said in a statement.