Funded status of U.S. corporate pensions falls sharply to 79.7%
This is according to the BNY Mellon Institutional Scorecard. The S&P pension deficit is also estimated to have increased by $83 billion, to $411 billion over the month—as assets fell to $1.61 trillion, and liabilities rose to $2.02 trillion.
Despite asset returns of negative 5.2 percent over the past year, the funded status of the typical U.S. corporate pension plan have still increased by 2.0 percent over the last 12 months, up from 77.7 percent.
Public DB plans and foundations & endowments also performed poorly in January, as they failed to meet the Scorecard's monthly return targets, by 4.2 and 4.0 percent, respectively. Assets dropped by 3.6 percent for both investor types.
The typical public DB plan is now 12.6 percent behind its one-year return target as assets have, in total, dropped 5.1 percent over that time period. Similarly, foundations & endowments are short of their annual return target by 12.0 percent, despite modest inflation over the past year.
January now marks the third consecutive month in which the funded status of the typical U.S. corporate pension plans decreased; and the third consecutive month in which public defined benefit plans and foundations & endowments failed to meet their monthly return targets. ■