Dan Sligh and his wife were in their pickup truck on Interstate 5 heading to a camping trip when a bridge before them disappeared in a "big puff of dust."More >>
The trucker was hauling drilling equipment when his load bumped against the steel framework over an Interstate 5 bridge. He looked in his rearview mirror and watched in horror as the span collapsed into the water behind him....More >>
Friday, May 24 2013 7:09 PM EDT2013-05-24 23:09:56 GMT
It is official, Boy Scouts of America must accept all male youth no matter their sexual orientation. On Thursday, more than 60-percent of the Boy Scouts of America's 14-hundred-members voted for theMore >>
It is official, Boy Scouts of America must accept all male youth no matter their sexual orientation.More >>
Friday, May 24 2013 7:37 PM EDT2013-05-24 23:37:25 GMT
The City of Hattiesburg is increasing the sewer rates for Petal and some Lamar County customers who use their wastewater lagoon. Petal residents are concerned and voicing their opinions after finding outMore >>
Petal and Hattiesburg residents are voicing their opinions after finding out the City of Hattiesburg is increasing sewer rates. More >>
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SOURCE Milliman, Inc.
Following a near-record improvement in January, February's deficit increase still leaves pensions $101 billion ahead of year-end 2012
SEATTLE, March 6, 2013 /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 corporate defined benefit pension plans. In February, these pensions experienced a $6 billion decrease in funded status based on a $17 billion increase in the pension benefit obligation (PBO) and an $11 billion increase in assets. February's growth in the funded status deficit follows a near-record improvement of $107 billion in January and still leaves these pensions in better shape than at the end of 2012.
"Assets continued to climb in February, but as usual it was interest rates that ultimately drove pension funded status," said John Ehrhardt, co-author of the Milliman Pension Funding Study. "Thanks to cooperative interest rates in January, we are still ahead for the year. Even with the Dow hitting new record highs, it will ultimately be interest rates that dictate the pension funding story in 2013."
In February, the discount rate used to calculate pension liabilities decreased from 4.45% to 4.40%, increasing the PBO from $1.666 trillion to $1.683 trillion at the end of the month. The overall asset value for these 100 pensions increased from $1.361 trillion to $1.372 trillion.
Looking forward, if these 100 pension plans were to achieve their expected 7.8% median asset return and if the current discount rate of 4.40% were to be maintained throughout 2013 and 2014, their pension funded ratio would improve from 81.5% to 85.6% by the end of 2013 and to 90.6% by the end of 2014.
These figures are tentative and will be revisited as part of the 2013 Milliman Pension Funding Study, to be released later this month. Milliman expects that de-risking activities made by some of these companies will probably lower asset and liability figures, which may slightly negatively affect the plans' overall funded status.
About Milliman Milliman is among the world's largest providers of actuarial and related products and services. The firm has consulting practices in healthcare, property & casualty insurance, life insurance and financial services, and employee benefits. Founded in 1947, Milliman is an independent firm with offices in major cities around the globe. It is a founding member of Abelica Global, an international organization of consulting firms serving employee benefits clients worldwide. For further information, visit milliman.com.
About the Milliman 100 Pension Funding Index For the past 12 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.
Friday, May 24 2013 5:52 PM EDT2013-05-24 21:52:06 GMT
The eight Marion County law enforcement officers who've lost their lives in the line of duty were remembered in an annual ceremony Friday morning. It included the laying of a wreath at a fallen officersMore >>
The eight Marion County law enforcement officers who've lost their lives in the line of duty were remembered in an annual ceremony Friday morning. More >>
Friday, May 24 2013 4:45 PM EDT2013-05-24 20:45:22 GMT
First responders from in Laurel and Jones County were treated to Lunch Friday by the Wayne Farms Laurel facility. As part of National Emergency Service Week, for the last 12-years Wayne farms has hostedMore >>
First responders from in Laurel and Jones County were treated to lunch Friday by the Wayne Farms Laurel facility. More >>