US stock rally lifts corporate pension plans


The strong performance of US stocks has given the bottom line of US corporate pension plans a boost, with a rise in funding status by 1.6 percentage points to 85.3%, according to BNY Mellon Asset Management.

The group found that assets for the typical US corporate pension plan grew by 1.8% in February, while liabilities decreased slightly, by 0.1%. Plan liabilities are calculated using the yields of long-term investment grade corporate bonds. As yields rose on these bonds, the liability for pension funds is lowered.

Gains from US equities, particularly in small-cap and mid-cap segments, boosted the assets