The funded status of U.S. pension plans fell 0.2%, on average, in September as liabilities rose 1.7% and assets grew only 1.5% in a typical, moderate-risk benchmark portfolio, according to a Mellon Financial Corp. index released Friday.
The Pittsburgh banking company tracks the financial health of U.S. pension plans through its Mellon Pension Liability indexes.
"A good month in the stock market was not enough to keep up with the growth of pension liabilities," Peter Austin, the executive director of Mellon Pension Services, said in a press release. "The stock market reacted well to lower energy prices and the prospect that the Fed has ended its tightening. Unfortunately, the lower interest rates helped to boost the outstanding liabilities that pension plans face."
The funded status of a typical plan was more than 6% better at Sept. 30 than at Jan. 1, Mellon said, due primarily to interest rate increases in the first five months of the year. The assets of a typical plan were 6.7% higher for the year through Sept. 30 and liabilities were 0.5% lower.
