From the June 2010 issue of Treasury & Risk magazine

Pension Plans See Red


The stock market's gains have not been enough to rescue U.S. companies' underwater defined-benefit pension plans. In April, the funding of 100 of the largest U.S. plans fell by $33 billion, according to actuarial firm Milliman, as a $6 billion increase in the value of their assets was more than offset by a $39 billion rise in their liabilities.

The plans' funding deficit now totals $239 billion and their funded ratio stands at 82.4%, Milliman says. It estimates that plans would have to post investment gains of 21.5% over the remainder of this year to reach 90% funded status.

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