Pensions by the Numbers: Discount Rates Drive Up Funded Status

The funded status of the 100 largest corporate defined benefit pension plans increased by $23 billion during June 2018, according to a report by Milliman, an actuarial and consulting firm.

The aggregate deficit of the Milliman 100 largest pensions fell to $118 billion at the end of June 2018 thanks to an increase in the discount rates, according to the report. This is the benchmark corporate bond interest rates used to value pension liabilities.

The funded status of the plans increased by roughly $132 billion from $250 billion deficit at the end of last June, while the discount ...