Milliman today released the results of its latest Pension Funding Index, which consists of 100 of the nation's largest defined benefit pension plans. In August, these plans experienced a $29 billion investment loss and a $33 billion increase in pension liabilities. The August increase in the pension funded deficit comes on the heels of an even larger increase in July. The combined $128 billion growth in the deficit between June 30 and August 31 is the largest two-month increase since a $134 billion increase in May and June of 2010.

It's been another rough summer for these 100 pensions. While the August results are discouraging, these pensions ended the month with a rally when you consider that, as of August 8, the deficit had ballooned by $97 billion in just five business days. With volatility on the asset side continuing, and no sign of interest rates rising anytime soon, we may be in for more turbulent times.

For the year, the cumulative asset return on these 100 pensions has been 1.15% and the Milliman 100 PFI funded status has decreased by $86 billion, dropping the funded ratio from 84.1% to 79.3%.