A new in-depth analysis by Mercer finds that 2012 is shaping up as another challenging year for U.S. pension plan sponsors, following on the heels of 2011’s funding deficits. Risk management has become the top priority for many as sponsors’ expectations of asset returns continue to decline.
The funded status of defined corporate benefit pension plans declined from 81% at the end of 2010 to 75% at the end of 2011, Mercer says. The number of plans considered to be “high risk” is up almost 70% for the same period.
