Wilshire Consulting estimates nearly six per cent decrease in aggregate funded ratio for US corporate pension plans in December
The aggregate funded ratio for US corporate pension plans decreased by 5.9 percentage points to end the month of December at 84.6 per cent, equal to year-end 2017, according to Wilshire Consulting, the institutional investment advisory and outsourced-CIO business unit of Wilshire Associates Incorporated.
Wilshire Consulting assists in ensuring secure and safe retirements for millions of Americans including those participating in some of the nation’s largest corporate and public retirement plans.
The monthly change in funding resulted from a 3.2 per cent increase in liability values compounded by a 3.5 per cent decrease in asset values. The aggregate funded ratio was down 6.9 percentage points for the quarter and flat for the year.
“December saw funded ratios decrease due to the worst monthly percentage loss for the Wilshire 5000 in nearly a decade,” says Ned McGuire (pictured), Managing Director and a member of the Pension Risk Solutions Group of Wilshire Consulting. “December’s 5.9 percentage point decrease in funding was the largest monthly decline since Wilshire began tracking monthly funded ratios in 2013,” he added.