The funded status of U.S. pensions fell to 72.4 percent in December, according to the BNY Mellon Pension Summary Report for December 2011. The drop was a result of a sharp increase in liabilities.
The decline in funded status was the second-largest calendar year decline since BNY Mellon began tracking this data in 2005. The large decline in 2011 was due to the liability discount rate reaching a new historic low, 4.36 percent, surpassing the record set in September 2011, according to the report. BNY Mellon noted that assets for the typical plan did increase 2.7 percent in 2011, but liabilities increased much faster, 20 percent, to send funding levels lower for the year.
The plan assets increased as a result of a slight gain in U.S. equity markets, BNY Mellon said.
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