Milliman analysis: Corporate pension contributions reach record-level in 2017, funding status improved to 86.0%
"There were incentives to increase contributions in 2017," says Zorast Wadia, co-author of Milliman's Pension Funding Study. "Additional contributions can both reduce the PBGC premiums paid by these plans, and allow them to leverage higher tax deductions in light of tax reform enacted at the end of 2017. It's a trend that's likely to flourish in 2018, as plan sponsors with calendar year plans can continue to leverage those higher 2017 tax deductions with contributions made prior to
The funded ratio for the Milliman 100 plans rose from 81.1% in 2016 to 86.0% in 2017, an increase due largely to strong investment returns coupled with a modest decline in life expectancy assumptions, and the higher level of plan contributions as noted above. Funding ratios for plans ranged from a low of 62.4% for
Other key highlights from the 2018 study include:
Analysis of asset gains. Strong investment returns added
Analysis of discount rate and pension liabilities. The median discount rate as of year-end 2017 declined to 3.60%, down 37 basis points from 3.97% the year before. Pension liabilities for the Milliman 100 plans increased to an all-time high of
Pension Risk Transfer (PRT) market matures. The 2017 PRT activity for the Milliman 100 plans was slightly smaller than in 2016, with an estimated
To view the complete 2018 Milliman Corporate Pension Funding Study, go to www.milliman.com/pfs. To receive regular updates of Milliman's pension funding analysis, contact us at [email protected].
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. For further information visit milliman.com.
About the Milliman Corporate Pension Funding Study
For the past 18 years, Milliman has conducted an annual study of the 100 largest defined benefit pension plans sponsored by
View original content with multimedia:http://www.prnewswire.com/news-releases/milliman-analysis-corporate-pension-contributions-reach-record-level-in-2017--funding-status-improved-to-86-0-300632705.html
SOURCE
Westfield Streamlines Commercial Lines Underwriting Through New Verisk and Duck Creek Technologies Integration
The Investment Center Expands Roles for Robert Fernandes, Nicola Sutton
Advisor News
Annuity News
Health/Employee Benefits News
Life Insurance News