U.S. corporate defined benefit and defined contribution plans had combined assets of $5.457 trillion as of Dec. 31, up 3.8% from three months earlier, according to the Federal Reserve's Flow of Funds report issued today.
Corporate DB plan assets totaled about $2.121 trillion as of Dec. 31, up about 2.6% from the previous quarter. Total assets in corporate DC plans were $3.336 trillion, up 4.6%.
Total assets in state and local government retirement funds as of Dec. 31 were $2.673 trillion, up 3.3% since Sept. 30, while assets in the federal government's retirement funds totaled $1.324 trillion, up 5.9%.
The value of equities in corporate DB plans was $811.4 billion as of Dec. 31, up 1.7%, while the value of bonds in those plans totaled $314.3 billion, up 1.9%.
The value of equities in corporate DC plans was $1.134 trillion as of Dec. 31, up 4.4%, while the combined value of bonds was $109.5 billion, down 0.8%.
Corporate DB plans saw outflows of $47.2 billion in the quarter, while corporate DC plans had inflows of $24.9 billion.
Craig Copeland, senior research associate for the Employee Benefit Research Institute, said part of the reason for the difference in fund flows was that workers who lost their jobs during the quarter took lump-sum distributions from their DB plans; also more than 50% of DB participants already have retired and are receiving benefits, Mr. Copeland said.
“There were positive net contributions to DC plans while there were negative net contributions to DB plans,” he said.