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Friday, April 21, 2017 9:14:06 AM
PENSION FUNDING INDEX: Funded status improves in March by $28 billion
* April 2017
Investment gains and increasing interest rates drive funded ratio to 85.3%
The funded status of the 100 largest corporate defined benefit pension plans increased by $28 billion during March as measured by the Milliman 100 Pension Funding Index (PFI). The deficit decreased to $247 billion from $275 billion at the end of February due to robust asset returns and an increase in the benchmark corporate bond interest rates used to value pension liabilities. As of March 31, the funded ratio improved to 85.3%, up from 83.8% at the end of February. This March 31 PFI publication reflects the annual update of the Milliman 100 companies included in the Milliman 2017 Pension Funding Study, published on April 6, 2017.
March’s 1.13% investment return increased Milliman 100 PFI asset values by $11 billion to $1.434 trillion. By comparison, the 2017 Milliman Pension Funding Study reported that the monthly median expected investment return during 2015 was 0.57% (7.0% annualized).
The projected benefit obligation (PBO) decreased by $17 billion during March, lowering the Milliman 100 PFI value to $1.681 trillion. The change resulted from an increase of eight basis points in the monthly discount rate to 3.96% for March, from 3.88% in February. Discount rates inched closer to the mark of 3.99% at the start of 2017.
For the quarter ended March 31, 2017, there was a net investment gain of 3.80%. Since the start of 2017, Milliman 100 PFI asset values have risen by $37 billion due to strong returns each month.
FIGURE 1: MILLIMAN 100 PENSION FUNDING INDEX PENSION SURPLUS/DEFICIT
http://www.milliman.com/Solutions/Products/Pension-Funding-Index/
• DiscoverGold
Click on "In reply to", for prior months reports
* April 2017
Investment gains and increasing interest rates drive funded ratio to 85.3%
The funded status of the 100 largest corporate defined benefit pension plans increased by $28 billion during March as measured by the Milliman 100 Pension Funding Index (PFI). The deficit decreased to $247 billion from $275 billion at the end of February due to robust asset returns and an increase in the benchmark corporate bond interest rates used to value pension liabilities. As of March 31, the funded ratio improved to 85.3%, up from 83.8% at the end of February. This March 31 PFI publication reflects the annual update of the Milliman 100 companies included in the Milliman 2017 Pension Funding Study, published on April 6, 2017.
March’s 1.13% investment return increased Milliman 100 PFI asset values by $11 billion to $1.434 trillion. By comparison, the 2017 Milliman Pension Funding Study reported that the monthly median expected investment return during 2015 was 0.57% (7.0% annualized).
The projected benefit obligation (PBO) decreased by $17 billion during March, lowering the Milliman 100 PFI value to $1.681 trillion. The change resulted from an increase of eight basis points in the monthly discount rate to 3.96% for March, from 3.88% in February. Discount rates inched closer to the mark of 3.99% at the start of 2017.
For the quarter ended March 31, 2017, there was a net investment gain of 3.80%. Since the start of 2017, Milliman 100 PFI asset values have risen by $37 billion due to strong returns each month.
FIGURE 1: MILLIMAN 100 PENSION FUNDING INDEX PENSION SURPLUS/DEFICIT
http://www.milliman.com/Solutions/Products/Pension-Funding-Index/
• DiscoverGold
Click on "In reply to", for prior months reports
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