Funded status of U.S. corporate pensions increased slightly in April to 89.2%, an increase of 0.7 percentage points, BNY Mellon Asset Management found. This is the eighth consecutive month of improvement.
The funding ratio has improved by nearly 5 percentage points since the beginning of the year.
Funded status improved due to rising stock markets raising assets by 2.6% over a 1.8% increase in liabilities. U.S. equities returned 3% to investors, while international developed markets improved 6%, according to the BNY Mellon Pension Summary for April 2011.
BNY Mellon attributed the liability increase to the decline in the Aa corporate discount rate to 5.5% from 5.6%. The Treasury discount rate fell 12 basis points to 4.3%.