Corporate pension funded status volatility continues falling

U.S. corporate defined benefit plans' funded status volatility dropped to 6.1% in June from 6.6% in April and May, according to NISA Investment Advisors' Pension Surplus Risk index. The PSRX was 8.8% in December 2022. The index, based on the average of the 100 largest pension plans, represents a one standard deviation change in funded status over a year, translating into a 68% chance that it will increase or fall by 6.1%.

The funded status volatility's dispersion was 2.8% at the 10th percentile and 9.8% at the 90th percentile. That compares with 3% and 10.5%, respectively, in May.