Participants’ longer lives are catching up with corporate pension plans. After the IRS rolled out updated mortality tables, the rate at which liabilities are discounted decreased by an average 1.1 percentage points for participants between 45 and 95, and 1.8 points for those between 65 and 95. Those changes are expected to increase plan benefit obligations by about 3% and, combined with rising PBGC premiums, should result in more companies considering their options.
Data on the Russell Investments $20 billion club of corporate pension plans was used for exhibit purposes.
Sources: Bloomberg LP, Russell Investments Group
Compiled and designed by Charles McGrath and Gregg A. Runburg