The typical U.S. pension plans funding level declined by 3.4 percentage points in February, according to Mellon Financials pension liability indexes. The funded status of pension plans had been improving in recent months, the decline in the stock markets last week helped drive down the value of assets, said David Chittim, senior vice president at Mellon Asset Management. The value of assets declined by 0.1% last month, while liabilities increased 3.3%. The increase in liabilities was driven by a 30- to 35-basis-point drop in interest rates.
For the first two months of the year, the typical funded status of a pension plan has declined by one percentage point.