Due to a decrease in liability values and flat asset values, the aggregate funded ratio for U.S. corporate pension plans increased 2.2% for the month of April. According to Wilshire Consulting, the funded ratio for April was 83.8%, up from 81.6% in March.
“The asset result is due to negative returns for fixed income, which offset the positive returns for equities, while liability values decreased due to the increase in corporate bond yields,” explains Ned McGuire, vice president and member of the pension risk solutions group of Wilshire Consulting.
A 12-month review reveals the funded ratio was at 86.2% as of April 30, 2014. The status for April 30 of the current year shows a monthly change of 2.2%, year-to-date change of 1.3% and trailing annual change of -2.4%.
The pension data is analyzed by the consulting firm’s institutional investment advisory and outsourced-chief investment officer business unit of Wilshire Associates. Figures represent information from S&P 500 companies, Citi Group Pension Liability Index Intermediate, Wilshire’s 2015 corporate funding study and Barclays Long Aa+ U.S. Corporate Index.