Funded Status of U.S. Corporate Pensions Rises to 74.4 Percent, According to BNY Mellon
Rising Equities Contribute to Improvement
NEW YORK, December 5, 2012 - Rising equity markets in November helped drive the funded status of the typical U.S. corporate pension plan to 74.4 percent, a 0.8 percentage-point increase, according to BNY Mellon.
Despite the November gain, the funded status for the typical plan has decreased 0.9 percen tage points for the year through November 30, according to the BNY Mellon Pension Summary Report for November 2012.
Assets for the typical plan in November rose 0.7 percent on the strength of rising equities markets. Liabilities fell 0.3 percent as the Aa corporate discount rate rose four basis points to 3.76 percent, BNY Mellon said.
Plan liabilities are calculated using the yields of long-term investment grade bonds. Higher yields on these bonds result in lower liabilities.
"Investors remain cautious as considerable uncertainty remains regarding an agreement on the U.S. budget," said Jeffrey B. Saef, managing director, BNY Mellon Investment Management, and head of the BNY Mellon Investment Strategy and Solutions Group. "After rising earlier in the year, liabilities have held steady recently as the discount rate used to calculate them has had little movement for the last
# # #
Note s to Editor s :
The BNY Mellon Investment Strategy and Solutions Group is a division of The Bank of New York Mellon.
BNY M e llon is a global f inancial services company f ocused on helping clients manage an d service their f inancial assets, operating in 36 countries and serving more than 100 markets. BNY Mellon is a leading provider of f inancial services f or institutions, corporations and high-net-w orth individuals, of f ering superior investment management and investment services through a w orldw ide client-f ocused team. It has $27.9 trillion in assets under custody and administration and $1.4 trillion in assets under management, services $11.6 trillion in outstanding debt and processes global payments averaging $1.4 trillion per day. BNY Mellon is the corporate brand of The Bank of New York Mellon Corporation. Additional inf ormation is available on w w w .bnymellon.com or f ollow us on
All inf ormation source BNY Mellon as of September 30, 2012. This press release is qualif ied f or issuance in the US only and is f or inf ormation purposes only. It does not constitute an of f er or solicitation of securities or investment services or an endorsement thereof in any jurisdiction or in any circumstance in w hich such of f er or solicitation is unlaw f ul or not authorized. This press release is issued by BNY Mellon Investment Management to members of the f inancial press and media and the inf ormation contained herein should not be construed as investment advice.
Past perf ormance is not a guide to f uture perf ormance. A BNY Mellon Company .