Interest rates boost pension plan funding in May
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Aided by a small rise in interest rates, which lowered the value of plan liabilities, the funded status of pension plans sponsored by large employers rose slightly in May, Mercer L.L.C. said Friday.
On average, pension plans sponsored by companies in the S&P 1500 were 79% funded at the end of May, up from 78% at the end of April.
“The month of May continues the trend of low interest rates and underwhelming equity returns,” Jim Ritchie, a partner in Mercer’s retirement business, said in a statement.
In all, the plans had $1.82 trillion in assets and $2.32 trillion in liabilities at the end of May. The plans’ aggregate funding deficit fell by $6 billion in May to $498 billion, Mercer said.
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