The estimated aggregate funding ratio of pension plans sponsored by S&P 1500 companies fell one percentage point to 83% in July, the result of falling discount rates, said a report released Wednesday by Mercer.
The typical discount rate measured by the Mercer yield curve dropped 17 basis points to 4.11% as of July 31, outpacing gains by the S&P 500 and MSCI EAFE indexes of 2% each.
The estimated aggregate value of pension fund assets of S&P 1500 companies as of July 31 totaled $1.84 trillion, up from $1.83 trillion the previous month, while estimate aggregate liabilities totaled $2.22 trillion, up from $2.18 trillion the previous month.
