April 2024
09Apr

Cyprus. State pension fund reaching critical levels

The Fiscal Council, advising the Cyprus government on economic policies, has renewed a warning call that borrowing from the Social Insurance Fund has reached critical levels, threatening to derail public finances if action is not taken. In an announcement on Thursday, it urged the government to act on the suggestions of an actuarial study, submitted to the authority earlier in the week. The authority has warned that it needs to address its dependency on the Social Insurance Fund, as it...

April 9, 2024
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05Apr

2023 Corporate Pension Funding Study

By Zorast Wadia, Alan H. Perry & Richard J. Botelli Jr The 2023 edition of the Milliman Corporate Pension Funding Study (PFS) is our 23rd annual analysis of the financial disclosures of the 100 U.S. public companies sponsoring the largest defined benefit (DB) pension plans. These 100 companies are ranked highest to lowest by the value of their pension assets as of the end of fiscal year (FY) 2022. These values have been reported to the public, to shareholders, and to...

April 5, 2024
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05Apr

U.S. corporate pension fund surpluses climb higher in March — 3 reports

U.S. corporate pension fund surpluses continued to climb in March, according to three new reports. Wilshire Advisors estimated the aggregate funding ratio of U.S. corporate plans reached 110.1% as of March 31, an increase of a full percentage point above the 109.1% funding ratio estimated as of Feb. 29. "March's increase in funded status was driven by the continued increase in asset value with most asset classes posting positive monthly performances, highlighted by the FT Wilshire 5000 index, which has now...

April 5, 2024
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March 2024
26Mar

Funded Status of Largest 100 US Public Pension Funds Rises to 78.6%

Public pension funded status increased to 78.6% at the end of February, up from 77.7% the month before, according to the monthly Milliman Inc. 100 Public Pension Funding Index, which tracks the funded status of the largest 100 public defined benefit plans in the U.S. Public plan funded status rose in February to the highest level since May 2022, when funded status for these plans stood at 78.4%, and 78.6% the month before. In the interim, funded status bottomed out at...

March 26, 2024
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13Mar

US. Corporate Pension Funding Levels Skyrocket in February

The funded status of U.S.-based corporate pension plans increased significantly in February, primarily due to a rally in technology stocks, driven by excitement over AI and semiconductors, according to industry reports. Funded status also continues to be boosted by heightened interest rates. The surplus in pension funding could have some plan sponsors considering what to do with their excess pension assets. Earlier this month, Eastman Kodak announced it would shut its investment office, shifting the management of its assets to...

March 13, 2024
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13Mar

U.K. pension fund surplus and funding ratio rises in February

The total surplus of U.K. corporate pension funds covered by the Pension Protection Fund, London's 7800 index increased by 4% in February to £442.3 billion ($559.8 billion), while the funding ratio also rose. The funding ratio increased to 146.1% as of Feb. 29, compared to 143.9% at the end of January, an update said. The total deficit of all plans with a shortfall was £3.9 billion as of Feb. 29, down from £4.3 billion as of Jan. 31. Total assets were...

March 13, 2024
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07Mar

U.S. corporate pension surpluses rise in February – 4 reports

U.S. corporate pension plan funding surpluses grew in February thanks to positive returns from growth assets as well as falling liabilities, according to four new reports. Wilshire Advisors estimated the aggregate funding ratio of U.S. corporate plans reached 109.4% as of Feb. 29, up from 106% a month earlier. "U.S. corporate pension plans have maintained their overfunded status for 14 consecutive months since early 2023," said Ned McGuire, managing director at Wilshire, in a news release March 6. "February's increase in...

March 7, 2024
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01Mar

Pension Funding Index February 2024

By Zorast Wadia The funded status of the 100 largest U.S. corporate defined benefit pension plans increased by $12 billion during January as measured by the Milliman 100 Pension Funding Index (PFI). The funding surplus improved to $40 billion as a result of liability decreases that outweighed asset losses during the month. Pension liabilities fell due to an increase in the benchmark corporate bond interest rates used to value those liabilities. As of January 31, the plans’ funded ratio climbed...

March 1, 2024
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February 2024
29Feb

U.S. public pension funding dips in January

The overall estimated funding ratio of the 100 largest U.S. public pension plans fell to 77.7% at the end of January, according to the Milliman 100 Public Pension Funding index. The fall in funding ratio from the year-end number of 78.2% was the result of flat investment returns and rising liabilities. According to Milliman, the aggregate estimated investment return for January was zero, with estimated returns ranging from -1% to 1.1% for the month. "Despite January's lack of investment gains and the...

February 29, 2024
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23Feb

U.S. public pension plans’ average funding ratio declines to 75.4% in 2023: survey

The average funding ratio for U.S. public pension plans declined to 75.4 per cent in 2023, compared to 77.8 per cent in the previous year, according to a new survey by the National Conference on Public Employee Retirement Systems. The report, which was based on responses from nearly 160 public pension funds with roughly US$2.3 trillion in combined assets under management, found the average return for plans was negative 1.9 per cent. The diminished investment returns were attributed to sharp declines...

February 23, 2024
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