Milliman 100 PFI investment status is $17 billion
Seattle, December 7, 2022 /PRNewswire/ — Milliman Corporation, the world’s leading consulting and actuarial firm, today announced the results of the latest Milliman 100 Pension Fund Index (PFI), which analyzes the 100 largest corporate pension plans in the United States.
Milliman 100 PFI stake fell to 111.2% in November. November 30th from 113.3% October 31st, was the peak of the year. The decline is due to the monthly discount rate dropping 55 basis points from his 5.71% in October to 5.16% in November.As a result, the PFI’s projected benefit obligation is $1.342 trillionrepresenting the loss $76 billion The month’s $59 billion.
“November’s drop in discount rates is the biggest monthly drop this year and only the second monthly drop seen in 2022,” said PFI co-author Zorast Wadia. “This has led to lower funding for the plan, even though November’s impressive investment return was the largest monthly gain of the year.”
Under optimistic forecasts with interest rates rising (5.81% by end-2023, reaching 6.41% by end-2024) and asset growth (9.9% annualized return), funding rate ends up at 127% rise. The pessimistic forecast (4.51% discount rate at the end of 2023, 3.91% discount rate at the end of 2024, annualized return of 1.9%) suggests a funding rate of 92% by the end of 2023 and 2024.
To view the full Pension Fund Index, please visit www.milliman.com/pfi. To view the full range of Milliman’s annual pension funding studies, please visit https://www.milliman.com/en/retirement-and-benefits/pension-funding-studies. To receive regular updates on Milliman’s pension fund analysis, please contact us at: [email protected].
Milliman is one of the world’s largest providers of actuarial and related products and services. The company provides consulting services in healthcare, property and casualty insurance, life insurance, financial services and employee benefits. Founded in 1947, Milliman is an independent company with offices in major cities around the world. For more information, visit milliman.com.