Corporate Pension Funding

A new report from actuarial firm Milliman Inc. says that the funding status of large corporate defined benefit pension plans deteriorated during last year. As of December 31, 2011, the Milliman 100 Pension Funding Index, which reflects the funding status of the 100 largest U.S. corporate pension plans, indicated a funding ratio of 72.4%, for a total funding deficit of $464 billion.

The funding ratio and the deficit numbers are highly sensitive to economic conditions, including interest rates and invested asset performance.

- Rick