Milliman Reports 5.5 Percent Fall In 1Q Pensions' Funding Ratio

Milliman, Inc., consulting and actuarial firm, releases the latest update to the Milliman 100 Pension Funding Index. In February, pensions lost another $54 billion in assets. These losses were offset by liability decreases of roughly $21 billion, resulting in a

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Milliman, Inc., consulting and actuarial firm, releases the latest update to the Milliman 100 Pension Funding Index. In February, pensions lost another $54 billion in assets.

These losses were offset by liability decreases of roughly $21 billion, resulting in a net loss of $33 billion in funding status for the month. In the last year alone, the funding ratio for these pensions has fallen from 99.6% to 71.7%.

Funding status has fallen by $337 billion in the last 12 months thanks in large part to a -26% asset return. As of the end of February, the total asset value for these pensions stood at $869 billion.

“January was a terrible month for asset values, and February was worse,” says John Ehrhardt, co-author of the Milliman 100 Pension Funding Index. “We’re not even through the first quarter yet and already funding status had declined from 77.2% to 71.7%, and that’s with asset values being offset by changes in discount rates.”

L.D.

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