Corporate bond interest rates fell a little in November, but the stock market did well, and that helped make the finances of big U.S. corporate pension plans look better, according to Milliman Inc.
Zorast Wadia and Charles Clark, analysts at the Seattle-based actuarial consulting firm, found that the 100 large corporate pension plans they track reported a $272 billion combined deficit in November on $1.98 trillion in pension benefits obligations, compared with a $284 billion deficit on $1.915 trillion in pension benefit obligations in October.
Overall funded percentage increased to 86.2%, from 85.2%.
The plans generated a 5.03% investment gain in November, the analysts reported.
In other pension plan and group annuity news:
AIG Retirement Services, a unit of American International Group Inc. of New York, has established a Total Retirement Services program.
The program combines administration and recordkeeping for 401(k) plans and other defined contribution plans with administration of traditional defined benefit pension plans.
AIG says the new program gives the plan participants a simplified look at how much money they may have in retirement, through a single website and mobile app and comprehensive account statements.