The funded status of the typical U.S. pension plan improved by 1.8 percentage points in April, as global stock markets advanced, according to Mellon Financial. The value of assets rose 2.7% for the month at the typical plan, while liabilities increased 0.9%, according to Mellons pension liability indexes.
Broad-based style markets improved last month, while interest rates have gone nowhere, Dave Chittum, senior vice president at Mellon Asset Management, said of plans funded status. Pension assets have generally increased, while liabilities have stayed where they are.
For the first four months of the year, the funded status of a typical U.S. pension plan improved 3.5 percentage points as assets rose 4.4% vs. a 0.9% increase in liabilities.