News Digest: US corporate pension funding rises in February
March 12, 2023
Corporate pension plans in the US seem to have increased their funding ratios during February amidst declining liability values that offset a drop in their assets. A new report quotes three research insights to suggest that average funding ratios in pension plans stood at 99.9% now.
The report quoted Legal & General Investment Management America to suggest that average funding ratios rose slightly due to the increase in discount rates that caused liability values to fall that resulted in offsetting a parallel equity market sell-off.
Plan discount rates grew an estimated 46 basis points during the month with the Treasury component alone growing by 39 basis points and credit component by 10 basis points. However, another report by Insight Investment said the funding ratio rose by 103% as against 102.5% a month earlier.