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FYE 9/30/2008 Pension Funded Status

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For S&P 500 companies with fiscal years ending September 30, the aggregate PBO funded status of global defined benefit pension plans as of the end of the 2008 fiscal year declined from the 2007 peak almost back to the 2006 level, as represented by the solid red line on this chart. As estimated using APM methodologies, the funded status for those same companies has declined further during the two months since their 2008 fiscal year ended, back down to 2004-2005 levels, as represented by the dotted red line.

The particular subset of companies with September 30 fiscal yearends has generally had an aggregate PBO funded status about 10 percentage points below that of S&P 500 companies with other fiscal yearends. This has nothing to do with the timing of the yearend itself, just that the particular set of companies with the 9/30 FYE happen to be among the companies with less well funded pension plans as compared with the rest of the S&P 500 universe. For comparison, the blue line on this chart shows the aggregate pension funded status of global defined benefit plans for S&P 500 companies with December 31 fiscal yearends, showing results for years 2003 through 2007. For all S&P 500 companies, including 9/30 FYE companies, the APM estimates the aggregate funded status to be about 85% at the end of November 2008.

(Remember, as I’ve previously disclaimed, posts such as this represent efforts of my favorite pastime. My formal work does not involve any of this, and none of it represents any position or comment that should in any way be attributed to my employer. Likewise, as always, it represents general personal impressions and should not be treated or used as formal professional advice.)

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Written by macheide

29 November 2008 at 6:45 am

Posted in άctuary


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