U.S. Corporate Pension Plans Funding Status – June 2023

Santa Monica, Calif., July 6, 2023 – The aggregate funded ratio for U.S. corporate pension plans increased by an estimated 2.3 percentage points in June and ended the month at 103.5%, according to Wilshire, a diversified global financial services firm. Through its suite of Outsourced Chief Investment Officer (OCIO) and advisory services, Wilshire assists in providing secure and safe retirements for millions of Americans, including those participating in some of the nation’s largest corporate and public retirement plans.

The monthly change in funded ratio resulted from a 2.3% increase in asset value and no material change in liability value. The aggregate funded ratio is estimated to have increased by 3.1%, 4.8%and 8.1% during the second quarter, year-to-date and over the trailing twelvemonths, respectively.

“June’s funded status saw the largest monthly increase since October 2022 due to asset value increases with the performance of the FT Wilshire 5000 in the first six months of this year the strongest it has been since 2019, and the 11th strongest since the inception in1974,” stated Ned McGuire, Managing Director, Wilshire. “With June’s month-end funded ratio estimate of 103.5%, U.S. corporate pension plans are fully funded in aggregate, and at its highest level since year end 2007, which was estimated at 107.8%, before the Great Financial Crisis” Mr. McGuire added.

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 & Intermediate Aa+ U.S. Corporate Indices.

The assumed asset allocation is below:

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About Wilshire

Wilshire is a global provider of market-leading indexes, advanced analytics, and multi-asset investment solutions. A trusted partner toa diverse range of more than 500 leading institutional investors and financial intermediaries, our clients rely on us to improve investment outcomes for a better future. Wilshire advises on over $1.3 trillion in assets and manages $83 billion in assets and is headquartered in the United States with offices worldwide.

More information on Wilshire can be found at www.wilshire.com.

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