For more stories like this, sign up for the PLANSPONSOR NEWSDash daily newsletter.
U.S. Pension Funding Inches Up 1.8% in April
The index showed assets in moderate-risk portfolios increased 2.7%, while the value of typical pension liabilities rose 0.9%.
Peter Austin, executive director of Mellon Pension Services, said in a press release that the marginal uptick was driven by a decline in long maturity interest rates, which fell four basis points during the month. “Lower yields increase the value of bonds and pension liabilities,” said Austin.
He further noted that the activity in the bond market was overshadowed by the rise in assets that was propelled by stock market increases.
According to the news release, the funding status for U.S. pension plans improved by 3.5%, with moderate-risk assets rising 4.4%, versus a 0.9% increase in liabilities.
For more information about the indexes, go here .
You Might Also Like:
DOL Prevails in Court Orders, Removing TPA From Acting as Fiduciary for Sponsors
Newport Group to Acquire Part of Evercore's Trust Business
The institutional trust and fiduciary business of Evercore's subsidiary Evercore Trust Company will become part of Newport Group.