"With the help of the lowest discount rate in the 12-year history of our study, corporate pensions last month saw their funding deficit increase to a near-record $415 billion,"said John Ehrhardt, co-author of the Milliman Pension Funding Study. "This is the second worst deficit we've seen."
In June, the discount rate used to calculate pension liabilities fell from 4.56% to 4.32%, pushing the PBO up to $1.698 trillion at the end of the month.
The overall asset value for these 100 pensions increased from $1.263 trillion to $1.283 trillion.
Looking forward, if these 100 pensions were to achieve their expected 7.8% median asset return and if the current discount rate of 4.32% were to be maintained throughout 2012 and 2013, these pensions would improve the pension funded ratio from 75.6% to 77.4% by the end of 2012 and to 82.0% by the end of 2013.
To view the complete study, go to http://ow.ly/4xFIt. To receive regular updates of Milliman's pension funding analysis, contact us at pensionfunding@milliman.com.