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2014 Pension MVA & PBO

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Pension MVA & PBO 2014 (275 FY+1)For 275 U.S. corporate sponsors of defined benefit pension plans, this graph shows aggregate global numbers for market value of pension assets (blue diamonds) and projected benefit obligations (red squares) for fiscal years ending in 2000 through fiscal years ending in 2014 (treating fiscal years ending during January as having been for the preceding calendar year). As expected, this chart shows trends that are quite similar to those that had been seen on the original charts shown in this post for 6 companies, for 16 companies, and for for 205 companies: asset increases for 2014 on pace with the gains of 2013, but with even greater increases in projected benefit obligations due primarily to significant declines in discount rates.

Remember my usual general cautionary notes (things that keep getting forgotten or shoved to very tiny print in footnotes in most of the industry reports on this sort of info): these numbers include both domestic and foreign pension plans; the numbers include unfunded deferred compensation plans; and the PBO numbers include the effect of future compensation increases. Which I’ll sort out in future posts, but essentially significantly dampening the degree to which current pension liabilities diverged from pension assets, if one means to be be looking solely to qualified domestic pension plans.

Another note — the first several versions of this post looked only at companies with calendar fiscal years. This version includes companies with fiscal years ending throughout the year, with a 1-month shift: fiscal years ending in January are treated as relating to the previous calendar year. As will also be sorted out in future posts; but in general, the basic trends remain intact — that is, the graph for 275 companies with both calendar and non-calendar fiscal years (and the 1-month shift) appears quite similar to the previously displayed charts.

(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

7 February 2015 at 12:05 pm

Posted in άctuary

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