The large decline in equity markets and lower interest rates conspired to bring the funded status of the typical U.S. corporate pension plan to 69.8 percent in May, its lowest level since December 2007.
In its monthly survey of pensions, BNY Mellon said that market forces drove pension liabilities higher and erased all of the gains that had been recorded in the first quarter of 2012.
Assets for the moderate risk U.S. corporate pension plan in May fell 3.9 percent as U.S. equity markets declined 6.2 percent and international developed markets dropped 11.5 percent on uncertainty regarding the Greek debt and related euro zone issues, according to the BNY Mellon report.
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