“The $282.3 billion funding shortfall at the beginning of the year expanded to a $342.5 billion deficit,” Russ Walker, vice president, Wilshire Associates, said in a statement. â€œDefined benefit pension assets for S&P 500 Index companies increased by $113 billion, from $1.11 trillion to $1.22 trillion, while liabilities increased $174 billion, from $1.39 trillion to $1.56 trillion. The median corporate funded ratio is 76.9%, which represents a modest decline from 77.7% last year.â€
The article continues:
The defined benefit plans in Wilshire’s study yielded a median 11.8% rate of return for 2012. This performance combines with the 3.6% median plan return for 2011, the 11.9% median plan return for 2010 and the 16% median plan return for 2009 to mark four consecutive years of gains for these plans after the global market dislocation events of 2007 and 2008.
So, we had four decent years and the pension funds are still that much underfunded? Not good.
Don’t count on your pension fund. You’ll likely be disappointed if you do.