Monthly statistics published by BNY Mellon Asset Management released Friday, June 4, found that plunging stock markets in May sent pension plan assets falling, resulting in what BNY Mellon said was worst funded status for the typical U.S. corporate pension plan since October 2009.
The funded status in May declined 4.3% to 82.0%, BNY Mellon reports, and through the end of May, the funded status of the typical U.S. corporate plan is down 3.5% for the year.
“U.S. stocks in May had their worst month since February 2009, declining nearly 8%, while a weakening euro helped to send international stocks down more than 11%,” said Peter Austin, executive director of BNY Mellon Pension Services, the pension services arm of BNY Mellon Asset Management, in a statement. “May’s results wiped out equity gains on a year-to-date basis. Unfortunately, there was no relief on the liability side as the AA corporate discount rate remained essentially flat despite a 30-basis-point widening of spreads to Treasuries.”