Institutional Investors

US pension funding improves in September


Mercer found that the funded status of US pension plans improved during September from the historic low position recorded at the end of August.

September’s gains were due to very strong equity returns and marked the end of a volatile quarter where most plans were still seeing a lower funded status than they had at the beginning of the year.

The deficit in pension plans sponsored by S&P 1500 companies decreased by $79 billion to $428 billion at the end of September. This new deficit figure corresponds with a funded status of 76%.

Pension plan funded status has