The aggregate funding ratio of S&P 500 companies with defined benefit pension plans improved to 89.5% at the end of June from 88.3% the previous month, Aon Hewitt said.
The Aon Hewitt Pension Risk Tracker on Friday said the jump in the aggregate funding ratio was due to strong equity markets, as well as a two-basis-point increase in the discount rate to 4.31% from 4.29%.
Despite the uptick in the funding ratio for the month, the ratio was still below the 91.2% aggregate ratio reported at the end of June 2013.
Aon Hewitt estimates daily the funding ratio of the 359 S&P 500 companies with DB plans.
