Pension Deficits Deepen in US, UK
Falling interest rates, equity values hit funds.
BY Caroline Cakebread | June 8, 2010
Global Pensions reports: Deficits for US and UK pension funds have rocketed over the past one to two months as schemes were hit by the double whammy of falling interest rates and dropping equity values.
Deficits for the pension funds of the S&P 1500 companies increased by US$84bn in the two months ended May to $336bn, Mercer reported.
Mercer financial strategy group partner Adrian Hartshorn said: “On average plan sponsors still have about half of their assets invested in equities, so the 7% fall in equity values over the last two months has adversely affected plan assets. Full article.