Falling stock markets in February resulted in lower pension plan assets and a decline of 0.7% in the funded status of the typical US pension plan, 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 plans liabilities. For the year to date, the funded status of the typical U.S. pension plan has declined 3.9%.
“Slowing growth prospects and rising inflation dampened the stock market once again. 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,” says Peter Austin, executive director, BNY Mellon Asset Management.