This report summarizes the assumptions used by companies in the calculation of pension costs and obligations, the disclosure of pension assets and obligations under ASC 715, and disclosures regarding postretirement benefits other than pensions, primarily retiree health and life insurance benefits.

This summary report is the 25th in a series by Towers Watson of annual analyses of defined benefit pension disclosures and the 19th summary report to analyze other postretirement benefit disclosures.

Key findings are:

  • For FY 2011, the discount rate used to calculate the present value of pension obligations ranges from 3.50% to 6.30%.
  • The expected rate of return on pension plan assets ranges from 3.10% to 10%. The average value of the expected rate of return is 7.70%.
  • At the end of 2011, 72% of companies had projected benefit obligation (PBO) funded status of less than 80%. This represents a worsening in funded status from the prior year.