A report from Milliman calculates that funding ratio for corporate plans decreased in May, once again going against the consensus.
Milliman estimates that the funding ratio among corporate plans dropped to 84% as of May 31 from 84.5% as of April 30. Discount rates dropped to 2.76% in May, offsetting the month's investment gains of 1.85%.
"With discount rates moored below 3% for the second month in a row, corporate pensions have been unable to regain any ground — despite the positive stock market returns," said Zorast Wadia, principal and consulting actuary at Milliman, in a news release.
Mr. Zorast explained in a phone interview in April that Milliman bases its estimates on data taken from specific corporate plans rather than "on a typical or hypothetical pension plan."