Corporate Pensions’ Funded Ratio Rises for Third Straight Month

Funded status up nearly 5% from November 2016.

The aggregate funded ratio for corporate pension plans in the US rose to 85.6% at the end of November, up from the 84.6% reported the previous month, and the 80.8% reported at the same time last year, according to investment consulting and services firm Wilshire Consulting.

Wilshire said the monthly rise in funded status was the result of a 1.3% increase in asset values, combined with a 0.1% increase in liability values. The aggregate funded ratio was up 4.7 percentage points year-to-date.

“November marks the third consecutive month of increases in funded ratios and the seventh month for the year,” said Ned McGuire, managing director of Wilshire Consulting.  “November’s continued improvement in funding was driven by the continued increase in public equity markets, which pushed asset values higher.”

McGuire said that November marked a record 13th consecutive month of gains for the Wilshire 5000 Total Market Index, extending its longest such streak in more than 30 years.

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