The funded status of the typical U.S. pension plan declined 0.7 percentage points due to falling stock markets, according to BNY Mellon Asset Management.
The assets of the typical moderate risk pension plan benchmark portfolio declined 1.4%, more than offsetting a 0.7% decrease in the average pension plan’s liabilities.
Year-to-date, the funded status of the typical U.S. pension plan has declined 3.9 percentage points.
“Slowing growth prospects and rising inflation dampened the stock market once again,” says Peter Austin, executive director of BNY Mellon Asset Management. “Expectations for further inflation also led to the rise of long-term interest rates, which was the primary reason for the slight decline in pension plan liabilities.”
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