Milliman, Inc., a premier global consulting and actuarial firm, today released the results of its latest Pension Funding Index (PFI), which consists of 100 of the nation's largest defined benefit pension plans. In June, these plans experienced a $3 billion decrease in pension liabilities and an $11 billion increase in asset value, resulting in a $14 billion decrease in the pension funded status deficit.

"If you want to understand why pension funded status is down this year, consider the fact that June was the first month in 2014 with rising interest rates -- and it's not like we saw a massive swing," said John Ehrhardt, co-author of the Milliman 100 Pension Funding Index. "Interest rates continue to be the story with these pensions."

Looking forward, if the Milliman 100 pension plans were to achieve the expected 7.4% median asset return for their pension portfolios, and if the current discount rate of 4.08% were maintained, funded status would improve, with the funded status deficit shrinking to$228 billion (86.7% funded ratio) by the end of 2014 and to $173 billion (89.9% funded ratio) by the end of 2015.

To view the complete study, go to http://us.milliman.com/pfi/.