Pension Assets Up, But So, Too, Are Liabilities

With the aging of America comes increased pension fund liabilities, a topic which has been top of mind for fund managers. A recent Milliman study shows the double-edged sword of such plans, which have higher funding ratios but also increased liabilities. The reach for yield in a low-interest rate environment has, in part, caused funding ratios to move lower as the deficit between growing liabilities and available assets climbs to a new study high.

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Good news in Millman study is that aggregate funding ratios and pension assets are up, the bad news is that liabilities are up, too

The good news in the Milliman Public Pension Funding Study is that the estimated aggregate...