The Markets June 4, 2012
Aggregate Pension Plan Deficit Grows in May
Pension plan funding gains in the first quarter were
wiped out in April and May, according to a report from Mercer.
Reported by Jay Polansky
The
aggregate deficit in pension plans sponsored by S&P 1500 companies
increased $80 billion during May, to $488 billion. This deficit corresponds to
an aggregate funded ratio of 76% as of May 31, compared with a funded ratio of
79% as of April 30, and just barely above the funded ratio from 75% at December
31, 2011. Mercer attributes the decrease in funding status to the falling equity
markets and an increase in liabilities because of sliding interest rates.