The combined funded status of the 100 largest U.S. corporate defined benefit pension plans studied by Milliman declined $22 billion in November, dropping the funding ratio 1.3 percentage points to 77%.
The plans’ cumulative assets dropped $8 billion for the month to $1.121 trillion, while liabilities increased by $14 billion to $1.456 trillion, according to a Milliman news release.
The combined pension funding deficit as of Nov. 30 was $335 billion.
It’s “two steps forward and one step back” on funded status, considering that the index experienced two positive months prior to November, John Ehrhardt, Milliman principal, consulting actuary and co-author of the Milliman 100 Pension Funding Index, said in a telephone interview.
He noted that plans that have a fiscal year ending in December will have to post the net funded status of their DB plans on their balance sheets when they close their books at the end of the month.
“They’re looking at an increased 2011 pension expense and cash contribution requirement,” he said.
