US - Corporate pension funds posted a record asset value loss in October, according to a Milliman survey released Monday.
Consulting and actuarial firm Milliman surveyed 100 of the largest defined benefit pension plans in the U.S., including carmaker colossal General Motors.
GM said its pension plans are "over-funded on a combined basis" without contributions, despite a change last year in GM Asset Management's asset allocation that reduced equities exposure by 26%.
"We've certainly taken a hit but it's nowhere near as bad as it could have been," said Julie Gibson, spokeswoman for GM. "We don't anticipate having to make any contributions in the foreseeable future."
U.S. public pension funds, such as the California Public Employees' Retirement System (CalPERS), have also changed asset allocation since last year.
The largest U.S. public pension fund reported its net total fund returns have "underperformed."
CalPERS dropped nearly 11% to $213.5bn in assets as of September 30 from $239.2bn in assets as of June 30. But CalPERS is "designed to weather market storms," said Clark McKinley, spokesman for the pension fund.
"We can afford to be patient for eventual market recovery. We're paying pension benefits and have sufficient liquidity to meet our contractual commitments," McKinley added.
Milliman said corporate pensions are "on pace" to a 91.3% funded ratio and an annual surplus loss of $154bn by Dec. 31.
Furthermore, defined benefit plans could fall into a $93bn deficit by the end of the year, which is "one more straw in the camel's back," according to John Ehrhardt, co-author of the report.
This week's edition of Professional Pensions is out now.
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