Milliman, Inc., a premier global consulting and actuarial firm, today released the results of its latest Pension Funding Index (PFI), which consists of 100 of the nation's largest defined benefit pension plans. In November, these plans experienced a $26 billion increase in pension liabilities and an $18 billion increase in asset value, resulting in an $8 billion increase in the pension funded status deficit. 

"The story this year seems to be the same month after month, and in November it's exactly the same as it was in October—an $8 billion increase in the funded status deficit, with liabilities exceeding positive asset performance," said John Ehrhardt, co-author of the Milliman 100 Pension Funding Index. "For the year, interest rates have dropped by 79 basis points, driving a $167 billion liability increase."

Looking forward, if the Milliman 100 pension plans were to achieve the expected 7.4% median asset return for their pension portfolios, and if the current discount rate of 3.89% were maintained, funded status would improve, with the funded status deficit shrinking to $230 billion (87% funded ratio) by the end of 2015 and to $191 billion (89.2% funded ratio) by the end of 2016. This forecast assumes 2014 aggregate contributions of $44 billion and 2015 and 2016 aggregate contributions of $31 billion.

To view the complete study, go to http://us.milliman.com/pfi/. To receive regular updates of Milliman's pension funding analysis, contact us at [email protected].