“This isn’t regular”

Pensions & Investments zeroes in on the grim record set by corporate pension plans in July. These pensions saw a deficit increase of $120 billion in July, pushing the deficit to an all-time high. Here’s an excerpt:

This isn’t regular,” said John Ehrhardt, principal and consulting actuary at Milliman and co-author of the study, in a telephone interview. “You’re talking about the worst month in the history of the 12-year study.”

The 10 lowest discount rates in the history of the study have all been in the past 11 months, Mr. Ehrhardt said. Conversely, eight of the 10 highest rates were in 2000, the first year of the study. Pension plans would need their assets to return 150% over liabilities just to keep pace with their current levels, he added.


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