The funded status of the typical U.S. corporate pension plan fell 1.8% in April to 80.8%, according to BNY Mellon.
Year to date, the funded ratio is up 4.5%, however. Last month, liabilities rose 4.0% while yields declined 3.84%. Assets for the typical plan increased 1.7% following a rally in the equities markets.
Jeffrey B. Saef, managing director of BNY Mellon Investment Management, says interest rates fell as investors expect the Federal Reserve to affirm its commitment to bond purchases in its efforts to spur the economy.
"Pension plans continue to feel the effect of the Fed's quantitative easing program, as the growth in liabilities more than doubled the growth in assets during April," Saef says.