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Pension Plans Have A Bad Month

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Falling stock prices probably caused the funded status of the typical U.S. defined benefit pension plan to drop in May, according to BNY Mellon Asset Management.

The stock slump probably cut plan assets about 4.8% at a typical plan, and low yields on bonds probably increased plan liabilities about 0.3%, according to BNY Mellon, boston, a unit of the Bank of New York Mellon Corp., New York.

The funded status probably was 82 in May, down from about 86% in April, the bank says.

U.S. stocks dropped 8% in May and had their worst month since February 2009, and international stocks were down 11%, the bank says.