Funded Ratios Tumble in U.S.
9.5 % decline since start of 2010.
BY Caroline Cakebread | July 14, 2010
(From Pensions and Investments) The funded ratio of the typical corporate U.S. pension plan fell 6 percentage points in June to 74%, the result of U.S. stock market declines and low interest rates, according to an analysis by BNY Mellon Asset Management.
The drop puts the funded ratio of the typical plan at its lowest level since February 2009, when the funded ratio was 73%. Funded status has declined 9.5 percentage points since the beginning of 2010.
The analysis almost mirrors a report released Monday by Mercer, saying the funded ratio of S&P 1500 companies dropped five percentage points in June to 73%.
Assets for the typical corporate U.S. pension plans dropped 2.3% in June, while liabilities increased 5.6% over the same period of time. Read the full article here.