Pension liabilities of U.S. corporations rose an average 2.1% in July, according to the Mellon Pension Liability indexes, a set of benchmarks that uses current discount rates to measure the performance of liabilities, confirmed Mellon spokesman Mike Dunn.
Lower interest rates led to the average increase in liabilities, which caused the funding status of a typical U.S. pension plan to fall 1.5% last month, according to a news release. Despite the July increase, however, plans were 7.5% better funded than they were on Dec. 31, according to Mellon's data. The average plan's assets were 3% higher at the end of July than they were at year's end.
Mellon has $870 billion in assets under management.