NEW YORK (Reuters) - U.S. corporate pensions clawed into the black in late 2016 as Wall Street rallied in anticipation of faster U.S. growth and inflation under a Trump administration, data from Wilshire Consulting showed on Wednesday.
The aggregate funding ratio of the company pensions Wilshire tracks climbed to 81.5 percent in December from 80.8 percent in November. A year ago, this measure of these plans’ ability to meet future payouts to retired workers was 81.4 percent.
“December marked the sixth consecutive month of either flat or rising funded ratios, which has contributed to 2016 year-end funded ratios recovering to be slightly above 2015 levels,” Ned McGuire, vice president at Wilshire Consulting, said in a statement.
Wilshire, based in Santa Monica, California, consults on investments for corporate and public pensions with combined assets of nearly $1 trillion.
Asset values, including those of stocks and bonds in the pensions, rose by 1.3 percent in December led by about 2 percent gain in the Wilshire 5000 Total Market Index .W5000TR, the firm said.
Their liabilities, or payouts promised to retired workers, edged up by 0.5 percent due to a fall in yields on corporate bonds .MERG0A0, Wilshire said.
Reporting by Richard Leong; Editing by Meredith Mazzilli