SEATTLE, May 10, 2011 /PRNewswire/ -- Milliman, Inc., a premier global consulting and actuarial firm, today released the results of its latest Pension Funding Index, which consists of 100 of the nation's largest defined benefit pension plans. In April, these plans saw pension liabilities increase by $31 billion due to a drop in interest rates, overshadowing a $19 billion increase in assets. This resulted in a $12 billion increase to the funded status deficit, bringing it to $184 billion.
"It was a good-news/bad-news month," said John Ehrhardt, co-author of the Milliman Pension Funding Study. "The good news: continued asset growth. The bad news: interest rates were again the big story, driving pension liabilities upward once again."
Over the last 12 months, the cumulative asset return has been 10.5% and the Milliman 100 PFI funded status has improved by $50 billion, pushing the funded ratio from 82.7% up to 87.2% at the end of April.
Milliman is among the world's largest independent actuarial and consulting firms. Founded in Seattle in 1947 as Milliman & Robertson, the company currently has 54 offices in key locations worldwide. Milliman employs over 2,500 people. The firm has consulting practices in healthcare, employee benefits, property & casualty insurance, life insurance and financial services. Milliman serves the full spectrum of business, financial, government, union, education and nonprofit organizations. For further information, visit www.milliman.com
About the Milliman 100 Pension Funding Index
For the past 11 years, Milliman has conducted an annual study of the 100 largest defined benefit pension plans sponsored by U.S. public companies. The Milliman 100 Pension Funding Index projects the funded status for pension plans included in our study, reflecting the monthly impact of market returns and interest-rate changes on pension funded status, utilizing the actual reported asset values, liabilities, and asset allocations of the companies' pension plans.
The results of the Milliman 100 Pension Funding Index were based on the actual pension plan accounting information disclosed in the footnotes to the companies' annual reports for the preceding fiscal year and for previous fiscal years. In addition to providing the financial information on the funded status of U.S. qualified pension plans, the footnotes may also include figures for the companies' nonqualified and foreign plans, both of which are often unfunded or subject to funding standards different from those for U.S. qualified pension plans. The results do not represent the funded status of the companies' U.S. qualified pension plans under ERISA.
SOURCE Milliman, Inc.