The Bank of New York Mellon Corporation : BNY Mellon : Funded Status of U.S. Pensions Fell in May
06/07/2012| 09:04am US/Eastern
By Tess Stynes
The average funded status of a typical U.S. corporate pension plan fell in May to the lowest level since BNY Mellon Asset Management began tracking the metric in December 2007, according to the latest data from BNY.
The average funded status fell 6.5 percentage points to 69.8% amid slumping U.S. equity markets and lower interest rates that together erased progress that pension plans had seen in the first quarter of the year, BNY Mellon said.
The average funded status had reached 79.8% in March.
During May, liabilities rose 5.1%, as a result of a 0.31 percentage point drop in the Aa corporate discount rate to a record low of 3.98%, the asset management group said. Plan assets were down 3.9% because of the decline in equity markets amid concerns about Europe's debt issues.
Write to Tess Stynes at Tess.Stynes@dowjones.com