Pension Risk Tracker Report

Aon Retirement Consulting Report on Pension Plans in the S&P 500

Reflections on 2019 and Q1 2020

Dating back to December 31, 2011, Aon has estimated the daily funded status of the defined benefit pension plans for S&P 500 companies through an interactive tracker.

In this edition, we are pleased to announce that we have expanded our daily estimates to explore the funded status by sector within the S&P 500. This further drilldown into the funded status activity, as well as the corresponding risk tolerance of each sector, provides more insightful benchmarks and further illuminates defined benefit pension plan trends.

We start the issue with a review of the funded status activity during 2019 for the S&P 500 in aggregate, including an attribution analysis of the reasons for the change. We then analyze 2019 funded status activity by sector and highlight key differences between sectors. Next, given the significant market volatility during the first quarter of 2020, owing mainly to the uncertainty generated by Coronavirus (COVID-19), we review the estimated funded status activity by sector during the first quarter of 2020. Finally, we highlight notable activity within one sector — Real Estate — which resulted in funded status activity that diverged greatly from the other sectors.

Download the report above to learn more. 

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The information contained herein and the statements expressed are of a general nature and are not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information and use sources we consider reliable, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation.}