Funded Status of Corporate Pension Plans Relatively Stable in July

By Staff Report

Aug. 6, 2009

The funded status of the average U.S. corporate pension plan increased by only 0.1 percentage point to 79.2 percent in July, according to an analysis by BNY Mellon Asset Management.

Assets and liabilities both rose 5.4 percent during the month.

“July’s stock market euphoria has not translated into pension funded status gains,” Peter Austin, executive director of BNY Mellon Pension Services, the pension services arm of BNY Mellon Asset Management, said in a news release. “While U.S. stocks returned nearly 8 percent and international stocks were up more than 9 percent in July, these big gains were only enough to offset the rise in liabilities that plans face. This rise in liabilities was due to the decline in the discount rate on AA corporate bonds to 5.88 percent from 6.28 percent at the end of June.”

Pension plan managers now must decide whether to position their portfolios for gains in equity markets or take a defensive position against the increase in liabilities, Austin said in the release.

A majority of corporate pension plans continue to be underfunded,” Austin said in the release. “A continuing equity rally would lower the contributions that companies would need to make to their pension plans to achieve full funding. However, declining stock markets or a further drop in bond yields would put increasing pressure on the plans.”

Filed by Timothy Inklebarger of Pensions & Investments, a sister publication of Workforce Management To comment, e-mail

Stay informed and connected. Get human resources news and HR features via Workforce Management’s Twitter feed or RSS feeds for mobile devices and news readers.

What’s New at

blog workforce

Come see what we’re building in the world of predictive employee scheduling, superior labor insights and next-gen employee apps. We’re on a mission to automate workforce management for hourly employees and bring productivity, optimization and engagement to the frontline.

Book a call
See the software

Related Articles

workforce blog


What is Earned Wage Access (EWA)? A Few Considerations

Summary Earned wage access (EWA) programs are an increasingly popular way for employees to access their...

benefits, earned wage access products, payroll, time and attendance

workforce blog


EEOC says that employers legally can offer incentives to employees to get vaccinated in almost all instances

If you’re an employer looking to get as many of your employees vaccinated as possible, you can rest eas...

ADA, CDC, COVID-19, EEOC, GINA, pandemic, vaccinated

workforce blog


Fixing some common misconceptions about HIPAA

Ever since the CDC amended its COVID-19 guidance to say that the fully vaccinated no longer need to wea...

COVID-19, health care, HIPAA, human resources, wellness