A new report projects endowment assets will grow 7.9% over the next five years, compared with 4.7% and 4.2%, respectively, for public and corporate defined benefit plans.
The funded ratio for the 100 largest public funds dropped to less than 73%, while corporate plans rose to 110%.
However, insurance companies likely won’t be able to accommodate the increased demand.
Funded levels for 255 S&P 500 plans reach their highest level since the Great Financial Crisis, Wilshire reports.
Aggregate investment return of 11.72% wasn’t enough to counter falling interest rates.
Despite returns of nearly 13%, US corporate plans’ funded level remained flat for the year, thanks to falling rates, Willis says.