To help sponsors deal with the changes that have taken place and to be prepared for the future, Mercer has developed a new and innovative framework for budgeting, monitoring and managing pension plan risk. Refer to current press releases.

2012 press releases

FTSE 350 pension deficits stable; Low interest rates driving new scheme behaviour 
8 May 2012

• Pension scheme accounting deficits were £69bn at 30 April 2012, broadly unchanged for the second consecutive month

• This corresponds to a funding ratio of assets over liabilities of 88%

• Low interest rate environment prompting changes such as reviewing and lowering the level at which interest rates are being hedged

Pension plan funded status falls in April 

2 May 2012

The aggregate deficit in pension plans sponsored by S&P 1500 companies grew $73 billion in April to $409 billion, according to new figures from Mercer. This deficit corresponds to an aggregate funded ratio of 79% as of April 30 2012 compared to a funded ratio of 82% as of March 31, 2012, but the funded ratio is still up from 75% at December 31, 2011.

A Step in the Right Direction for Canadian Pension Plans 

9 April 2012

The solvency position of most Canadian pension plans improved in the first quarter of 2012 on the back of good equity market returns and a slight increase in long-term federal bond yields. The Mercer Pension Health Index* stands at 63 per cent on March 31st, up 3 per cent over the quarter.

Despite £20 billion paid in contributions, FTSE 350 pension deficits increased by £17 billion

4 April 2012

• Pension scheme accounting deficits were £81bn at 31 March 2012  - broadly unchanged from February 2012

• FTSE 350 pension deficits stood at £64bn at 31 March 2011; deficit has increased by £17 billion over last 12 months despite an estimated £20bn being paid in contributions

Pension plan funding rebound continues 

3 April 2012

The aggregate deficit in pension plans sponsored by S&P 1500 companies fell to $336 billion at March 31, 2012, a decrease of $147 billion from year end 2011, according to new figures from Mercer . This deficit corresponds to an aggregate funded ratio of 82% as of March 31 2012 compared to a funded ratio of 79% as of February 29, 2012 and 75% at December 31, 2011.

FTSE350 pension scheme deficits increase by £9 billion as growth in liabilities prunes asset recover 
7 March 2012

• Pension scheme accounting deficits were £92bn at 29 February 2012, an increase compared to the £84bn at 31 December 2011 and £83bn at 31 January 2012

• Funding levels fell over February even as the FTSE100 edged closer to the 6000 mark

• 7% increase in FTSE 100 since January 2012 offset by fall in bond yields

Mercer’s Pensions Risk Survey data shows that the accounting deficit of defined benefit (DB) pension schemes in the UK has increased despite rising equity markets. According to Mercer’s latest data, its estimate of the aggregate IAS19 measure of FTSE350 DB pension schemes’ deficits* stood at £92bn (equivalent to a funding ratio of 84%) at 29 February 2012, compared to £84bn at 31 December 2011 and £83bn at 31 January 2012.

Equity market rally in February drives continued improvement in pension plans funded status

2 March 2012

The aggregate deficit in pension plans sponsored by S&P 1500 companies was $410 billion at February 29, 2012, a decrease of $21 billion from January 31, 2012, according to new figures from Mercer. This deficit corresponds to an aggregate funded ratio of 79% as of February 29, 2012 compared to a funded ratio of 78% as of January 31, 2012 and 75% at December 31, 2011.

FTSE350 pension deficits remain stubbornly high 
 6 February 2012

• Pension scheme accounting deficits were £83bn at 31 January 2012 remaining broadly unchanged compared to the £84bn at 31 December 2011
  

   

• This represents average funding levels of 85% at both dates, with no improvement following the deterioration in 2011

Pension deficits ease in January; interest rate environment, 2012 cash contributions pose challenges 
2 February 2012

The aggregate deficit in pension plans sponsored by S&P 1500 companies was $431 billion at January 31, 2012, a decrease of $53 billion from year-end 2011, according to new figures from Mercer1. This deficit corresponds to an aggregate funded ratio of 78% as of January 31, 2012 compared to a funded ratio of 75% at December 31, 2011.

Mercer identifies five key pension risk management tips for US pension plan sponsors in 2012

10 January 2012

Mercer’s recent survey in partnership with CFO Research Services highlights the concern among plan sponsors being exposed to material capital market risks, with 65% worried about the impact of future economic uncertainty and volatility.

“Pension deficits and the impact upon the financial health of their organizations are a key concern in many boardrooms and C-suites, and the time to act is now. With such market volatility, plan sponsors need to be nimble to take advantage and put in place a robust risk management plan,” said Jonathan Barry, Partner in Mercer’s Retirement, Risk and Finance business.

Mercer has identified what we believe to be the five most important pension risk management steps for US pension plan sponsors.

Devastating 3rd quarter losses leave Canadian pension plans unable to make up ground in 4th quarter

10 January 2012

Despite a rebound in stock markets in October, the solvency financial positions of most Canadian pension plans failed to improve in the fourth quarter due to a further drop in federal bond yields. The Mercer Pension Health Index* stands at 60 per cent as of December 31st, unchanged over the quarter and down 13 per cent on the year.

Pension deficits widen for a second year straight

4 January 2012

The aggregate deficit in pension plans sponsored by S&P 1500 companies reached $484 billion at December 31, 2011, an increase of $169 billion from year end 2010, according to new figures from Mercer[1]. This deficit corresponds to an aggregate funded ratio of 75% as of December 31, 2011 compared to a funded ratio of 81% at December 31, 2010.

Relative confidence in UK corporate debt inflates pension deficits by nearly one-third in past year

3 January 2012

• Pension scheme accounting deficits were £84bn at 31 December 2011 compared to £64bn at 31 December 2010

• This represents a 3% fall in the funding levels over the year from 88% to 85%

• Funding levels have also deteriorated over the month, despite an increase in asset values

Mercer’s Pensions Risk Survey data shows that the accounting deficit of defined benefit (DB) pension schemes in the UK has increased for the second consecutive month. According to Mercer’s latest data, the aggregate FTSE350 IAS19 defined benefit pension deficit  stood at £84bn (equivalent to a funding ratio of 85%) at 31 December 2011, compared to £80bn (funding ratio of 86%) at 30 November 2011. The funding ratio at 31 December 2010 was 88% corresponding to an aggregate deficit of £64bn.