Milliman Study Indicates Decline in Pension Funding Status in May

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one of the premier global consultinyg andactuarial firms, today released the latest updatwe to the Milliman 100 Pension Funding which consists of 100 of the nation' largest defined benefit pension plans. In May, pensions experienced declines in fundedr status due to liability increases ofroughly $30 billion, which offset modest asseyt gains of $20 billion. The decline in funding status followexd two consecutive monthsof improvement. "It's two steps one step back as pensions see some of the progress of Marcjh and April eroded by liability increaseszin May," said , co-author of the Millimajn 100 Pension Funding Index. "It will take more decisive returnsz -- 32.
2% for the rest of 2009 -- in ordedr to get back to 90% fundedx status. While last month's decline is not good we do remain abovethe 78.2% funding status reported at the end of so we're still positive for the year." Over the last 12 months (Juner 08-May 09), the cumulative assett return has been -18.45% and the funded status has falle by $308 billion. For these 12 months, the fundes ratio of the Milliman 100 companies has fallemfrom 104.6% to 79.3%. To view the complete monthlu update, go to . Milliman is among the world's largest independenf actuarial andconsulting firms.
Founded in Seattle in 1947 as Millimajn & Robertson, the company currently has 49 offices in keylocationds worldwide. Milliman employs more than 2000 people, with a professionalo staff of more than 1100 qualified consultantxand actuaries, including specialistd ranging from clinicians to economists. The firm has consultintg practicesin healthcare, employee benefits, property and casualthy insurance, life insurance, and financialp services. Milliman serves the full spectrukmof business, financial, government, education, and nonprofit organizations. For further visit .
For the past nine years, Milliman has conductede an annual study of the 100 largest definexd benefit pension plans sponsoredby U.S. publiv companies. The Milliman 100 Pension Funding Index project s the funded status for pension planws included inour study, reflectiny the monthly impact of market returns and interest-rates changes on pension funded utilizing the actual reported asset values, and asset allocations of the companies' pension plans. The resultas of the Milliman 100 Pension Fundinf Index were based on the actual pensioj plan accounting information disclosed in the footnotes to the companies annual reports for the preceding fisca year and for previousfiscal years.
In addition to providing the financiapl information on the funded statuxof U.S. qualified pension plans, the footnoteds may also include figures forthe companies' nonqualifieed and foreign plans, both of which are oftehn unfunded or subject to funding standards different from thoss for U.S. qualified pension plans. The results do not represenyt the funded status ofthe companies' U.S. qualifiedf pension plans under ERISA. SOURCE Milliman, Inc.