Special Report: Corporate balance sheet
Liabilities plummeted and funded status improved for the 100 largest plans in 2021 as the average discount rate rose 30 basis points.
Corporate plans came out of 2021 with better funding ratios, but 2022's challenge may be yield.
Corporate plans saw funding levels rise and pension expenses fall in 2020, despite higher liabilities and a historically low discount rate.
Aggregate assets, liabilities and funded status rose for the 100 largest plans in 2020 as the average discount rate plummeted.
High returns offset by a discount rate drop lowered aggregate funding in 2019 and left plans looking for derisking opportunities in 2020.
Funding obligations for U.S. corporate defined benefit plans are likely to increase by more than 98% in 2021 compared with 2020.