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Tuesday, July 11, 2017 3:35:11 PM
Pension Funding Index: Funded status drops in June by $4 billion
By Milliman | July 2017
The Milliman 100 PFI funded ratio decreases to 83.5% as discount rates decline and assets post returns below expectations
The funded status of the 100 largest corporate defined benefit pension plans decreased by $4 billion during June as measured by the Milliman 100 Pension Funding Index (PFI). The deficit grew to $285 billion from $281 billion at the end of May due to a decrease in the benchmark corporate bond interest rates used to value pension liabilities. Poor investment returns during June also contributed to the funded status decline. As of June 30, the funded ratio fell to 83.5%, down from 83.7% at the end of May. The current funded ratio at mid-year is slightly above that at the start of 2017 of 83.3%, providing something of a silver lining given the funded status declines experienced throughout the second quarter.
June’s 0.35% investment return left the Milliman 100 PFI asset value flat at $1.443 trillion. By comparison, the 2017 Milliman Pension Funding Study reported that the monthly median expected investment return during 2016 was 0.57% (7.0% annualized).
The projected benefit obligation (PBO) increased by $4 billion during June, raising the Milliman 100 PFI value to $1.728 trillion. The change resulted from a decrease of two basis points in the monthly discount rate to 3.74% for June, from 3.76% in May.
http://www.milliman.com/Solutions/Products/Pension-Funding-Index/
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https://investorshub.advfn.com/Market-Direction-and-Trends-26249/
By Milliman | July 2017
The Milliman 100 PFI funded ratio decreases to 83.5% as discount rates decline and assets post returns below expectations
The funded status of the 100 largest corporate defined benefit pension plans decreased by $4 billion during June as measured by the Milliman 100 Pension Funding Index (PFI). The deficit grew to $285 billion from $281 billion at the end of May due to a decrease in the benchmark corporate bond interest rates used to value pension liabilities. Poor investment returns during June also contributed to the funded status decline. As of June 30, the funded ratio fell to 83.5%, down from 83.7% at the end of May. The current funded ratio at mid-year is slightly above that at the start of 2017 of 83.3%, providing something of a silver lining given the funded status declines experienced throughout the second quarter.
June’s 0.35% investment return left the Milliman 100 PFI asset value flat at $1.443 trillion. By comparison, the 2017 Milliman Pension Funding Study reported that the monthly median expected investment return during 2016 was 0.57% (7.0% annualized).
The projected benefit obligation (PBO) increased by $4 billion during June, raising the Milliman 100 PFI value to $1.728 trillion. The change resulted from a decrease of two basis points in the monthly discount rate to 3.74% for June, from 3.76% in May.
http://www.milliman.com/Solutions/Products/Pension-Funding-Index/
• DiscoverGold
Click on "In reply to", for prior months reports
*** For Market Direction and Trends visit our board:
https://investorshub.advfn.com/Market-Direction-and-Trends-26249/
Information posted to this board is not meant to suggest any specific action, but to point out the technical signs that can help our readers make their own specific decisions. Your Due Dilegence is a must!
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