US Pension Asset/Liability Deficit At Nearly Two Thirds, Says Ryan Labs

October 2002 was the best month of the year for US pension assets vs. liabilities, as assets outperformed liabilities by 9.88%, says Ryan Labs. The firm warns that this still left a year to date growth rate deficit of 26.58%.

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October 2002 was the best month of the year for US pension assets vs. liabilities, as assets outperformed liabilities by 9.88%, says Ryan Labs. The firm warns that this still left a year-to-date growth rate deficit of -26.58%. Ryan says that, at this rate, 2002 will become the “second worst year on record”. Moreover, combining the last two calendar years now has pension assets falling behind liabilities by an alarming -63.52% . It says that moving the Asset/Liability funding ratio 63% to the left would cause many pension plans to fall into a deficit position. Higher contributions, earnings drag, PBGC premium penalty and even solvency issues will confront America’s pensions over the next few years.

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