Underfunding decreases in 2003, PBGC says

Severe underfunding at U.S. corporate pension plans fell to $278.5 billion in 2003, an 8.9% decrease from $305.9 billion a year earlier, the PBGC announced today. The total comes from reports the PBGC required from companies that had more than $50 million in unfunded pension liabilities as of April 15. A total of 1,050 pension plans filed reports, with total liabilities of $920.3 billion and total assets of $641.8 billion, for an average funded ratio of 69.7%. This is the first time the PBGC has immediately released the underfunding report; it is part of the agency's effort to "improve the transparency of the defined benefit pension system," according to a press release.