The funded status of pension plans of S&P 1500 companies, as studied by Mercer, remained at 77% as the aggregate pension deficit decreased by $3 billion. BNY Mellon reported the funded status of a typical corporate pension plan decreased 0.5 percentage points to 80.7%.
Jonathan Barry, a partner in Mercer's retirement risk and finance consulting group, said it was a relatively slow month with discount rates decreasing about eight basis points to 3.82% and equities gaining just more than 1%.
“For interest rates, we've seemed to hit something approaching a bottom,” Mr. Barry said in a telephone interview. Liability volatility should be close to bottoming out while equity markets are expected to remain volatile, he added.