Investing July 9, 2007

Index: Little Pension Funding Status Change in June

July 9, 2007 (PLANSPONSOR.com) - A typical U.S. pension plan saw little change in its funding status in June, according to a new report.

Reported by

Fred Schneyer

According to a news release from BNY Mellon Asset Management, the typical plan has improved its funded status by 7.4%.year to date. BNY Mellon tracks the financial health of U.S. pension plans through its BNY Mellon Pension Liability Indexes.

“As a result of the soft equity markets, the assets of a moderate risk pension portfolio declined 1% in June,” said Peter Austin, executive director of BNY Mellon Pension Services, in the press release. “However, this was offset by a similar decline in typical pension liabilities, as long-maturity interest rates rose 11 basis points during the month. Higher interest rates reduce liabilities and the value of bonds.”

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For the first six months of 2007, assets of a typical moderate risk portfolio increased 5% while liabilities declined 2.4%.

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