The liabilities owned by a typical US pension plan fell 7.5% during the first five months of 2006 while assets of a moderate-risk benchmark portfolio climbed by 2.2%, Mellon said in a press release.
“Together, this could mean a nearly 10% improvement in a plan’s fundedstatus, which is significant,” said Peter Austin, executive director ofMellon Pension Services, in the release. He added that “Interest ratechanges, asset return volatility and regulatory pressures are forcingsponsors to keep a close eye on their pension plans.”
Mellon tracks the fluctuations of liabilities owed by typical US pensions and compares them against the returns of benchmark portfolios that represent the assets of those plans. More about the Mellon Indexes can be found at http://www.melloninstitutional.com .