On the other hand, investors have snapped up stocks as an improving global economy and strong corporate earnings have offset less easy money from the Federal Reserve and delays in Washington on promised tax reform and other fiscal stimulus.
The benchmark S&P 500 equity index is at all-time highs, producing a year-to-date total return, including reinvested dividends, of 13.2 percent. The Nasdaq, also at a record, has delivered a year-to-date total return of 20.9 percent.
All in all, the aggregate funding level of S&P 1,500 companies fell 1 percentage point in August to 82 percent. This was unchanged from the end of 2016 but some 15 points higher than the low seen in 2011, data from Mercer released last week showed.
The aggregate funding status before the financial crisis was at 100 percent.
This meant these retirement programs still needed $404 billion to fill their funding deficit, $12 billion less than in June but down only $4 billion from the end of 2016, Mercer data showed.
Higher Pension Insurance
The viability of defined benefit pensions, which promise fixed monthly payments, is critical to people who already rely on them or will depend on them in retirement.
By 2030, more than 20 percent of U.S. residents will be age 65 and over, against 13 percent in 2010, government data showed.
Pensions need to ensure their solvency as funding pressure persists in the current low interest rate climate.
Some companies have transferred their pension plans to be managed by insurers, while others have sold bonds to raise cash to fund their pensions.