Value of pension funds continues to fall
March 9, 2009 by Personal Liberty News Desk
A new survey has revealed that the funding status of moderate risk pension portfolios fell by more than six percent in February.
This represented the 14th consecutive month of decline as the value of assets has dropped due to the weakness of the stock market, based on research conducted by the Bank of New York Mellon Asset Management.
"Rapidly falling equity values continue to inflict pain on U.S. pension plans," says Peter Austin, executive director of BNY Mellon Pension Services. "U.S. stocks fell for a second straight month and have dropped 18 percent so far this year."
He added that the international markets have fared even worse.
According to the BNY Mellon Pension Liability Index, over the past year, the funding ratio of the typical pension plan has declined by one percentage point. Since January 2008, the funded ratios for these plans have fallen by 32.3 percentage points.
The Bank of New York Mellon Corporation is a financial services company operating in 34 countries. It has $20.2 trillion in assets under custody and administration, $928 billion in assets under management, services more than $11 trillion in outstanding debt and processes global payments averaging $1.8 trillion per day.