U.S. Pension Plan Health Rebounds Slightly

October 9, 2007 (PLANSPONSOR.com) - U.S. pension plan funding grew by 2.4% in September, mostly propelled by falling market volatility, according to the latest figures from BNY Mellon Pension Liability Indexes.

The rise in pension health in September follows a slight 0.9% slip in August, while was mostly fueled by a fall in Treasury bond yields (See U.S. Pension Plan Health Dips Slightly ).

According to the liability index report, assets of a moderate risk pension portfolio increased 2.6% in September, far outpacing the 0.2% rise in a typical plan’s liabilities.

“Lower volatility and an easing Federal Reserve brought relief to the capital markets in September,” said Peter Austin, executive director of BNY Mellon Pension Services, in a statement. “Long-maturity Treasury bond yields rose slightly, but high-grade corporate bonds tightened 10 basis points.” 

The typical U.S. plan has improved its funded status by 4.6% for the year to date, with moderate risk assets up 7.3% and typical pension liabilities 2.7% higher.

For the full results for September go  here .