Investor Relations Disclaimer

You are about to review presentations, reports, filings and/or other materials regarding Aon plc (NYSE: AON) that contain time-sensitive information. The information contained therein is only current as of the date thereof. Aon expressly disclaims any obligation to review, update or correct these materials after the date thereof. Aon may update, amend, supplement or otherwise alter the information contained in any such materials by subsequent presentations, reports, filings, or other means without notice.

Certain statements made on this web site or in materials accessed in or through this section of our web site are “forward-looking statements,” which are subject to risks and uncertainties, and Aon's actual results may differ (possibly materially) from those indicated in such statements. See Legal Notice for further information regarding such statements and additional disclaimers with respect to the materials and sites that you may access through the Investors section of our Web site.

I Understand   |   Return Home

Funded Status of U.S. Pension Plans Falls in 1st Quarter, Aon Analysis Finds

04/09/2015

LINCOLNSHIRE, Ill., April 9, 2015 /PRNewswire/ -- The funded status of U.S. pension plans dropped in the first quarter of 2015 as liabilities outpaced asset growth, according to a new analysis by Aon Hewitt, the global talent, retirement and health solutions business of Aon plc (NYSE: AON).

Aon Corporation (http://www.aon.com) is a leading provider of risk management services, insurance and reinsurance brokerage, human capital and management consulting, and specialty insurance underwriting. There are 37,000 employees working in Aon's 500 offices in more than 120 countries. Backed by broad resources, industry knowledge and technical expertise, Aon professionals help a wide range of clients develop effective risk management and workforce productivity solutions.

According to Aon Hewitt's Pension Risk Tracker[1], the funded deficit for U.S. pensions increased by $32 billion in the first quarter of 2015 and the aggregate funded ratio dropped to 82.0 percent in the first quarter of 2015, from 83.2 percent in the previous quarter.

"The first quarter saw variability in funded status from month to month, with February's improved funded status ultimately being offset by decreases in both January and March," explained Ari Jacobs, Global Retirement Solutions leader at Aon Hewitt. "Falling interest rates continue to drive liabilities higher, outpacing pension asset growth. As a result, we anticipate continued settlement activity throughout 2015. Additionally, in-year declines in interest rates may contribute to the attractiveness of lump sum programs, which often base lump sum rates on interest rate levels from the end of the previous year, resulting in potential accounting gains for plan sponsors."

Pension liabilities increased by 2.1 percent, or $44 billion in the first quarter, as interest rates fell. The drop in ten-year Treasury rates (-0.23 percent) and widening credit spreads (0.05 percent), resulted in a 0.18 percent drop in the discount rate over the quarter for the typical pension plan. 

This rise in pension liabilities overshadowed the 2.27 percent returns, or $12 billion of asset growth for the same period. Return-seeking assets in the Russell 3000 Index returned 1.80 percent, while bonds outperformed equities during the first quarter.

Sign up for News Alerts: http://aon.mediaroom.com/index.php?s=58
Follow Aon Hewitt on Twitter @AonHewitt

[1] Aon Hewitt tracks the daily funded status of 361 S&P 500 companies with defined benefit pension plans. The above analysis reflects the roll-forward of the total defined benefit pension plan information from the FYE 2013 10-K disclosures.

Media Contact:
MacKenzie Lucas, 847-442-2995, mackenzie.lucas@aonhewitt.com
Maurissa Kanter, 847-442-0952, maurissa.kanter@aonhewitt.com

Logo - http://photos.prnewswire.com/prnh/20100719/AQ37264LOGO

 

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/funded-status-of-us-pension-plans-falls-in-1st-quarter-aon-analysis-finds-300063196.html

SOURCE Aon plc

Stock Quote: NYSE

Price 282.78

Change -1.54

Volume 813,696

% Change -0.54%

Intraday High 284.49

52 Week High 341.98

Intraday Low 280.05

52 Week Low 246.21

Today's Open 281.78

Previous Close 284.32

Oct 05, 2022 04:03 PM Pricing delayed 20 minutes
Latest Annual Report

Email Alerts

Email Address *
Mailing Lists *





 
Enter the code shown above.

Contact Information

200 East Randolph
Chicago, IL 60601
Phone: (312) 381-3310

Email