U.S. Corporate Pension Plans Funding Status – March 2024

Santa Monica, Calif., April 4, 2024 – The aggregate funded ratio for U.S. corporate pension plans increased by an estimated 1.0 percentage points in March, ending the month at 110.1%, according to Wilshire, a diversified global financial services firm. Wilshire assists in providing a suite of OCIOand advisory services to some of the nation’s largest retirement plans which help fund the retirement of millions of Americans.

This month’s change in funded ratio resulted from a 1.7 percentage point increase in asset value partially offset by a 0.8 percentage point increase in liability value. The aggregate funded ratio is estimated to have increased by 5.1 and 9.7 percentage points in the first quarter and over the trailing twelve months, respectively.

"March's increase in funded status was driven by the continued increase in asset value with most asset classes posting positive monthly performances, highlighted by the FT Wilshire 5000 Index which has now posted five consecutive months of positive returns and the best first-quarter return in five years and major equity indexes marking all time highs with the Japanese Nikkei Index attaining such after nearly 35 years" commented Ned McGuire, Managing Director at Wilshire. "With the second consecutive month, and quarter, of positive asset returns, U.S. corporate pension plans have continued their 15-month streak of overfunding with the estimated funded ratio at its highest month-end level in several decades," added Mr. McGuire.

A 12-month review of the funded ratio follows:

The aggregate figures represent an estimate of the combined assets and liabilities of corporate pension plans sponsored by S&P 500 companies with a duration in line with the FTSE Pension Liability Index – Short. The funded ratio is based on the FTSE – Short Liability, with service cost, benefit payments and contributions in line with Wilshire’s 2023 corporate funding study. The most current month-end liability growth is estimated using a FTSE Pension Liability Index – Short duration matched weighting of the Barclays Long and Intermediate Aa+ U.S. Corporate Indices.

The Data

Wilshire’s practice is to collect data on U.S. pensions from 10-K filings for companies in the S&P 500 Index at fiscal year-end (FYE). All data for fiscal year 2022 is based on the 253 S&P 500 Index constituents that maintain defined benefit pension plans as of year-end 2022. The estimated monthly funded ratios are based on liabilities, service cost, benefit payments and contributions in line with Wilshire’s 2023 corporate funding study.

About Wilshire

Wilshire is a leading global financial services firm and trusted partner to a diverse range of approximately 500 leading institutional investors and financial intermediaries. Our clients rely on us to improve investment outcomes for a better future. Wilshire advises on over $1.4 trillion in assets and manages $121 billion in assets as of December 31, 2023. Wilshire is headquartered in the United States with offices worldwide. More information on Wilshire can be found at www.wilshire.com.

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