Milliman analysis: Corporate pension funded status sees sixth straight month of improvement in June
2024年7月10日 - 3:56AM
ビジネスワイヤ(英語)
Milliman PFI funding ratio rises to 103.7%
as of June 30
Milliman, Inc., a premier global consulting and actuarial firm,
today released the results of its latest Milliman 100 Pension
Funding Index (PFI), which analyzes the 100 largest U.S. corporate
pension plans.
During June, the Milliman 100 PFI funded status held steady at
its $46 billion surplus level, while the funded ratio rose slightly
to 103.7% from 103.6% at the end of May. Discount rates fell by 7
basis points in June to 5.46%, which led to a $9 billion increase
in pension liabilities, to $1.262 trillion. However, the market
value of plan assets also increased by $9 billion for the month
thanks to June’s 1.22% investment return, reaching $1.308 trillion
as of June 30, compared with $1.299 trillion as of May 31.
“The first half of 2024 has seen nothing but funded ratio
improvements,” said Zorast Wadia, author of the PFI. “However, with
markets at all-time highs and concerns that discount rates may
eventually fall, the forecast for the second half of 2024 may not
be as sanguine, and liability-matching portfolios will continue to
be prudent strategies for plan sponsors.”
Looking ahead, under an optimistic forecast with rising interest
rates (reaching 5.76% by the end of 2024 and 6.36% by the end of
2025) and annual asset returns of 10.4%, the funded ratio would
climb to 110% by the end of 2024 and 122% by the end of 2025. Under
a pessimistic forecast with similar interest rate and asset
movements (5.16% discount rate at the end of 2024 and 4.56% by the
end of 2025 and 2.4% annual asset returns), the ratio is projected
to decline to 99% by the end of 2024 and 90% by the end of
2025.
To view the complete Pension Funding Index, go to
www.milliman.com/pfi. To see Milliman’s full range of annual
Pension Funding Studies, go to
https://www.milliman.com/en/retirement-and-benefits/pension-funding-studies.
To receive regular updates of Milliman’s pension funding analysis,
contact us at pensionfunding@milliman.com.
About Milliman
Milliman is among the world's largest providers of actuarial and
related products and services. The firm has consulting practices in
healthcare, property & casualty insurance, life insurance and
financial services, and employee benefits. Founded in 1947,
Milliman is an independent firm with offices in major cities around
the globe. For further information, visit milliman.com.
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Zorast Wadia Milliman, Inc. Tel: +1 646 473 3315
zorast.wadia@milliman.com