*SMLR-Net, the source of selected news on labor and employment relations and human resource management.*
Milliman, a consulting company specializing in employee benefits, publishes analyses of the top 100 pension funds that are available to the public.
*Milliman 100 Monthly Pension Funding Index* *(June 2012)* ** http://milliman.com/expertise/employee-benefits/products-tools/pension-fundi...
Milliman analysis: 2012 gains evaporate as corporate pension funded status sinks by $90 billion in May
The funded status of the 100 largest corporate defined benefit pension plans dropped by $90 billion during May 2012, as measured by the Milliman 100 Pension Funding Index (PFI). The deficit increased to $357 billion from $267 billion at the end of April. May’s $90 billion deficit increase was the seventh largest in the 12-year history of this study and follows a $39 billion deficit increase in April.
For the rest of the article, see web page. http://milliman.com/expertise/employee-benefits/products-tools/pension-funding-index/
*Milliman 2012 Pension Funding Study (March 2012)* http://www.milliman.com/expertise/employee-benefits/products-tools/pension-f...
*Decline in discount rates drives pension plans to record deficits in 2011*
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Impact of declining discount rates evident in 2011 financial statements of the Milliman 100 companies
As expected, declining discount rates in 2011 (including a historic year-end low of 4.80%) drove the pensions of the Milliman 100 companies to a record year-end 2011 funding deficit of $326.8 billion — a $94.7 billion increase over the year-end 2010 funding deficit of $232.1 billion. It is the largest deficit in the 12-year history of the Milliman Pension Funding Study.
Pension expense, the charge to company earnings, also registered a record level of $38.3 billion during fiscal year 2011, a $7.8 billion increase over fiscal year 2010, which had been the previous 11-year high.
Somewhat of a surprise were the aggregate 2011 cash contributions of the Milliman 100 companies. Contributions were only $55.1 billion. We had expected an increase over the record level of $60.3 billion contributed in 2010, but it did not materialize. With the historically low discount rates, we expect new highs in 2012 contributions and pension expense.
To read the complete summary of this study, see web page.http://www.milliman.com/expertise/employee-benefits/products-tools/pension-funding-study/
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