Institutional Investors

Liabilities at US corporate pensions soar


The funding status of US corporate pensions is falling again as a drop in interest rates boosted the liability ratio of plans and as a result corporate plans gave up all the gains they achieved in 2011 and finished July at 1.5 percentage points lower than they were at the beginning of the year, according to BNY Mellon.

BNY Mellon calculates the funded status of the typical US corporate plan at 83.6%, which is the worst level since November 2010. Mercer meanwhile calculates a similar funding level with the deficit of pension plans sponsored by S&P 1500 companies