Pensions
November Sees Another Gain in Corporate Pension Funded Status
If December can keep up the relatively strong results this year, defined benefit plan funded status may finish in the black for 2024.
Returns for the 100 largest U.S. public plans during the month ranged from a loss of 1% to a gain of slightly more than 1%, per Milliman.
The stock market rebound in November and December spurred a $349 billion increase in the 100 largest U.S. public plans’ funding, per Milliman.
The 100 largest corporate DB plans in the U.S. saw their collective funded ratio rise to 100.7% in May.
Goldman’s Michael Moran warns against complacency and issues some warnings.
Higher interest rates lowered liabilities, as average asset losses reach 21% for the fiscal year, a Russell Investments study shows.
The underfunded program wants a diversified portfolio that doesn’t underperform in bad times.