US corporate pension plans’ funding ratios fell 0.4% in June from May’s 83.5% to 83.1%, according to a report from Wilshire Consulting on Wednesday. However, the data shows that the funded ratio is still up 7.6% from last year, where it was 75.5% funded.
The slight change is due to a 0.7% increase in liability values that was partially offset by a 0.2% increase in asset values, according to the report. Although the quarter’s average fund ratio is up 1.2% year-to-date (YTD), the aggregate funded ratio dropped 1% from March’s 84.1%.
The 12-month review of corporate pension plans funding ratios can be viewed below.
The aggregate figures for the corporate pensions are an estimate of the combined assets and liabilities of S&P 500-sponsored companies with a duration in-line with the Citi Group Pension Liability Index (CPLI) — Intermediate. Funded ratios are based on the CPLI — Intermediate liability. Contributions, benefit payments, and service cost are aligned with Wilshire’s 2016 corporate funding study. Current month-end liability growth is determined via the Barclays Long Aa+ US Corporate Index.
The assumed asset allocation can be viewed below.