“U.S. stock markets had an excellent month, sending pension plan asset values higher,” says Peter Austin, executive director of Mellon pension services. “At the same time, long-maturity interest rates increased 20 basis points in May, reducing the value of pension liabilities significantly.”
Assets of a moderate risk pension portfolio increased 1.7% in May, while the value of typical pension liabilities fell 2.2%.
For the year to date, the typical plan is ahead by 7.5 percentage points.
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