By Emily Boyle
Source: Plan Sponsor
U.S. corporate pension funding increased in June for the third consecutive month, as strong investment returns drove pension assets higher.
The funded status of the 100 largest corporate defined benefit pension plans increased to 105.1% from 104.9% and improved by $3 billion in the month, according to Milliman’s June Pension Funding Index.
In May, a decrease in liabilities, due to higher bond yields, drove up pension funding. In June, “liabilities actually increased because discount rates fell by 19 basis points,” says Zorast Wadia, the author of Milliman’s PFI. “But it was the asset returns that saved the day because of the market’s very strong return.”