This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Funded Status Of U.S. Corporate Pensions Falls To 91.0 Percent, According To BNY Mellon ISSG









NEW YORK, Feb. 4, 2014 /PRNewswire/ -- U.S. corporate pension plans in January 2014 gave up all of the gains they had achieved in the fourth quarter of 2013 as the funded status of the typical plan slid 4.2 percent to 91.0 percent, according to the BNY Mellon Investment Strategy & Solutions Group (ISSG).    The BNY Mellon Institutional Scorecard for January noted falling interest rates sent liabilities higher and declining stocks sent assets lower.

Public defined benefit plans, endowments and foundations also lost ground in January as a result of the falling equity markets, ISSG said. 

"January's decline was the largest monthly drop in funded status for U.S. corporate plans since May 2012," said Andrew D. Wozniak, director, portfolio management and investment strategy, ISSG.

For U.S. corporate plans, assets fell 0.4 percent and liabilities increased 4.2 percent, ISSG said.  The increase in liabilities was due to a 27 basis-point decline in the Aa corporate discount rate to 4.66 percent, the report said.   Plan liabilities are calculated using the yields of long-term investment grade bonds. Lower yields on these bonds result in higher liabilities.

"Investors became more concerned about global growth fundamentals and the prospects for some emerging markets," Wozniak said.  "As they became more cautious, assets shifted to bonds, sending rates lower."

On the public side, assets at the typical defined benefit plan in January fell nearly 1.4 percent, missing the plans' monthly goal of positive 0.6 percent returns, ISSG said.  Year over year, public plans are ahead of their target by 1.5 percent, ISSG said.

For endowments and foundations, the real return was -1.4 percent, which was short of its target for spending plus inflation, ISSG said.  The report said assets fell 0.9 percent.  Investments in real estate and hedge funds helped endowments and foundations to mitigate their assets losses for the month, the report said.

1 of 2

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,001.22 -38.27 -0.22%
S&P 500 1,988.40 -3.97 -0.20%
NASDAQ 4,538.5510 +6.4470 0.14%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs