A report by Credit Suisse shows that S&P 500 companies’ pensions are better funded in 2006 than they were last year.
It estimates that the pension plans could end the year at US$77 billion underfunded(95% funded)compared with $145 billion underfunded(90% funded)at the end of 2005.
It’s the fourth consecutive year that the health of defined benefit(DB)plans will improve.
The number of companies with underfunded plans in the index should drop to 294 from 321 in 2005.
Last year, there were 164 companies with pension plans that were less than 80% funded—that’s 45% of the S&P 500 firms that offered DB plans.
Credit Suisse estimates that should drop to 114 this year, or 31%.
To comment on this story email craig.sebastiano@rci.rogers.com.