The funded status of corporate pension plans in the Milliman 100 Pension Funding index experienced a net loss of $57 billion in June to 75.7%, down 3.6 percentage points since May 31, with $6 billion in investment losses coupled with liability increases of $51 billion.
The combined value of the plans was $961 billion as of June 30.
The year-over-year cumulative asset return for the year ended June 30 was -14.68%, with the funded status falling $310 billion. The funded ratio of the companies has dropped from 100.1% since June 2008.
“With an expected return of 8.1% and a discount rate of 6.01% for the balance of 2009, the funded status of the Milliman 100 pension plans is projected to slightly increase with an expected pension deficit of $305 billion and a funded ratio of 76.2% on Dec. 31,” the report predicts. “Asset returns of 19% for the rest of 2009 would result in a funded ratio of 80% and projected deficit of $256 billion at the end of the year.”
