The funded status of corporate pension plans in the Milliman 100 Pension Funding Index declined by a net $10 billion in May to 79.3%, down 0.3 percentage points since April 30, with $20 billion in investment gains and $30 billion in liability increases.
The plans funded status as of May 31 was up 1.1 percentage points from Dec. 31.
The year-over-year cumulative asset return for the year ended May 31 was -18.45%, with the funded status falling from 104.6% as of May 31, 2008, according to a Milliman news release.
Its two steps forward, one step back as pensions see some of the progress of March and April eroded by liability increases in May, John Ehrhardt, principal and consulting actuary at Milliman and co-author of the index study, said in the news release.
It will take more decisive returns 32.2% for the rest of 2009 in order to get back to 90% funded status, he said in the release. While last months decline is not good news, we do remain above the 78.2% funding status reported at the end of 2008, so were still positive for the year.