Corporate pension plans likely saw a modest improvement in funded status in May, driven by continuing gains in equity markets and moderate declines in Treasury rates and credit spreads. Total-return plans with higher equity allocations may have outpaced LDI-focused plans, depending on the plan liability duration. Based on NEPC’s hypothetical open- and frozen-pension plans, the funded status of the total-return plan increased by 0.4%, while the LDI-focused plan rose 0.6%.
The funded status of the total-return plan rose 0.4% as strong equity performance continues to drive funded status upwards.
The funded status of the LDI-focused plan was up 0.6%, as gains from equities and credit exceeded liability growth. The plan is 88% hedged as of May 31.
We use cookies to provide the services and features offered on our website, and to improve our user experience. By using this website you agree to our use of these cookies as explained in our Privacy Statement.
