Milliman, Inc., a premier global consulting and actuarial firm, today released the results of its latest Pension Funding Index, which analyzes the 100 largest U.S. corporate pension plans. In March, these pension plans experienced a $6 billion decrease in funded status based on decreases in asset values and increases in pension liabilities. This month's analysis reflects the results of the 2015 Pension Funding Study, published on April 2nd. 

"Last month these pensions continued to languish in the low-interest-rate doldrums," said John Ehrhardt, co-author of the Milliman 100 Pension Funding Index. "Whether or not rates climb between now and the end of the year will likely determine whether or not these pensions can meaningfully reduce the funded status deficit before year end."

Looking forward, under an optimistic forecast with rising interest rates (reaching 4.10% by the end of 2015 and 4.70% by the end of 2016) and asset gains (11.3% annual returns), the funded ratio would climb to 90% by the end of 2015 and 104% by the end of 2016.  Under a pessimistic forecast with similar interest rate and asset movements (3.20% discount rate at the end of 2015 and 2.6% by the end of 2016 and 3.3% annual returns), the funded ratio would decline to 75% by the end of 2015 and 68% by the end of 2016.

To view the complete Pension Funding Index, go to http://us.milliman.com/PFI. To see the 2015 Milliman Pension Funding Study, go to http://us.milliman.com/PFS/. To receive regular updates of Milliman's pension funding analysis, contact us at [email protected].