The typical U.S. pension plan’s funded status rose 1.5 percentage points in April, thanks to improved stock prices, according to BNY Mellon Asset Management. Assets of the typical moderate-risk pension plan’s benchmark portfolio improved 3%, outpacing liabilities, which climbed 1.5% in April. For the first four months of 2008, the funded status of the typical U.S. pension plan declined 2.3 percentage points.
“U.S. stocks finally rallied after five months of negative performance as Fed easing and liquidity facilities calmed the markets,” Peter Austin, executive director of BNY Mellon Asset Management, said in a news release. “However, corporate yield spreads narrowed impressively against treasuries, with long corporate bond yields 10 basis points lower than last month. Lower yields on longer-term corporate bonds resulted in higher liabilities for the typical pension plan.”
