Best Level since March 2012

NEW YORK, February 5, 2013 — The funded status of the typical U.S. corporate pension plan soared 4.9 percentage points to 81.2 percent in January, its highest level since March 2012, as rising equities markets raised asset levels and higher interest rates reduced liabilities, according to the BNY Mellon Investment Strategy and Solutions Group (ISSG).

Assets for the typical plan in January increased 3.0 percent as equities markets rose more than five percent in the U.S. and international developed markets, according to the BNY Mellon Pension Summary Report for January 2013. Liabilities fell 3.2 percent as the Aa corporate discount rate rose 24 basis points to 4.13 percent, the report said.

Plan liabilities are calculated using the yields of long-term investment grade bonds.  Higher yields on these bonds result in lower liabilities.

"This is a great start for the year for corporate pension plans in the U.S., and we've now had three months in a row of steady improvement in funded status," said Jeffrey B. Saef, managing director, BNY Mellon Investment Management, and head of the ISSG. 

The BNY Mellon Investment Strategy and Solutions Group is a division of The Bank of New York Mellon.

BNY Mellon Investment Management is one of the world's leading investment management organizations and one of the top U.S. wealth managers, with $1.4 trillion in assets under management. It encompasses BNY Mellon's affiliated investment management firms, wealth management services and global distribution companies. More information can be found at www.bnymellon.com.

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