Special Report: Balance Sheet
Liabilities plummeted and funded status improved for the 100 largest plans in 2021 as the average discount rate rose 30 basis points.
Despite $498 billion in pension contributions by S&P 500 companies from 2008 to 2019, the group’s aggregate funded status recovered only one-third of its 30% drop from a 2007 high.
Many sponsors are looking to OCIOs to help hedge against interest-rate volatility, which impacts plan liabilities and pension costs.
Negative year-end returns offset the funding advantage of higher discount rates for the 100 largest U.S. corporate DB plans in 2018.
The average funding ratio of the 100 largest U.S. corporate pension plans rose 4.7 percentage points in 2017, P&I's annual analysis shows.
Fixed income had the largest share of assets in 2017 among the 100 largest corporate pension plans, at 41.2%.
The average funding ratio of the 100 largest U.S. corporate pension plans rose 4.7 percentage points in 2017, P&I's annual analysis shows.
