ShareThis Page
Business

Pension funding falls to lowest level in five years

| Friday, Oct. 7, 2011

A typical corporate pension in America was funded at just 70.1 percent in September, the lowest level in five years, said latest data from BNY Mellon Asset Management.

The low mark was 7.9 percentage points below the 78.0 percent funded status in August, said the Bank of New York Mellon Corp. unit, which has tracked pension funding since 2006.

A typical pension's assets decreased 4.5 percent in September, the third monthly drop in a row for equities. Liabilities increased 6.2 percent.

"Concerns about the sluggish economy, the European sovereign debt issues and the U.S. budget issues have all contributed to growing investor pessimism," said Jeffrey Saef, managing director, BNY Mellon Asset Management. "As a result, they continue to flee equities and other risky assets and have increased their allocations to Treasuries."

TribLIVE commenting policy

You are solely responsible for your comments and by using TribLive.com you agree to our Terms of Service.

We moderate comments. Our goal is to provide substantive commentary for a general readership. By screening submissions, we provide a space where readers can share intelligent and informed commentary that enhances the quality of our news and information.

While most comments will be posted if they are on-topic and not abusive, moderating decisions are subjective. We will make them as carefully and consistently as we can. Because of the volume of reader comments, we cannot review individual moderation decisions with readers.

We value thoughtful comments representing a range of views that make their point quickly and politely. We make an effort to protect discussions from repeated comments either by the same reader or different readers

We follow the same standards for taste as the daily newspaper. A few things we won't tolerate: personal attacks, obscenity, vulgarity, profanity (including expletives and letters followed by dashes), commercial promotion, impersonations, incoherence, proselytizing and SHOUTING. Don't include URLs to Web sites.

We do not edit comments. They are either approved or deleted. We reserve the right to edit a comment that is quoted or excerpted in an article. In this case, we may fix spelling and punctuation.

We welcome strong opinions and criticism of our work, but we don't want comments to become bogged down with discussions of our policies and we will moderate accordingly.

We appreciate it when readers and people quoted in articles or blog posts point out errors of fact or emphasis and will investigate all assertions. But these suggestions should be sent via e-mail. To avoid distracting other readers, we won't publish comments that suggest a correction. Instead, corrections will be made in a blog post or in an article.

click me