The funded ratio for TowersPerrin's hypothetical benchmark pension plan was 79.2% in April, down 3.1 percentage points from March, according to Richard Wendt, a principal in the firm's Philadelphia office.
In April, "the drop in interest rates caused a significant increase in liabilities, and asset returns were not very attractive," a combination that drove the funded ratio down to the lowest level in two years, he said.
Long bond yields declined about 25 basis points last month, with the yield on Moody's AA index of long corporate bonds dropping to 5.31%, the lowest since 1967, Mr. Wendt said. In equities, the S&P 500 fell 1.9% in April, and the small-cap/midcap Russell 2500 lost 4.5%.
