Funded Status of U.S. Corporate Pensions Declines to 80.7 Percent, According to BNY Mellon ISSG

 Funded Status of U.S. Corporate Pensions Declines to 80.7 Percent, According
                              to BNY Mellon ISSG

Liabilities Rise Faster than Assets

PR Newswire

NEW YORK, March 5, 2013

NEW YORK, March 5, 2013 /PRNewswire/ --The funded status of the typical U.S.
corporate pension plan slid 0.5 percentage points to 80.7 percent in February
as a decline in interest rates drove liabilities higher, according to the BNY
Mellon Investment Strategy and Solutions Group (ISSG). Year to date, the
funded ratio has risen 4.4 percentage points, BNY Mellon ISSG said.

Liabilities for the typical corporate plan increased 1.4 percent in February,
outpacing the 0.8 percent gain in assets during the month, according to the
BNY Mellon Pension Summary Report for February 2012. The report attributed
the gain in liabilities to the eight-basis-point decline in the Aa corporate
discount rate to 4.05 percent.

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

The positive asset returns were driven by the rising U.S. equity markets in
February, although asset gains were limited by the slight fall in
international developed markets during the month., the report said.

"Plan funding levels took a small step back in February following three strong
months of improvements," said Jeffrey B. Saef, managing director, BNY Mellon
Investment Management, and head of the ISSG. "Political uncertainty regarding
spending and revenue will likely keep funded status volatility elevated for
the next several months."

Notes to Editors:

The BNY Mellon Investment Strategy and Solutions Group is a division of The
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