Funding Status of U.S. Pension Plans Improves For Third Month in Row, According to BNY Mellon Asset Management

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percentage points in May, accordingf to monthly statistics published by BNY MellonAsset Management. The funded status of the typical plan has improvedc for three months ina row. Assets for a typicall moderate risk portfolioincreased 4.1 while liabilities rose 3.3 percent during the For the year through May 31, the funding ratio for the typicak plan is now up 10.2 percentage points, as representefd by the BNY Mellon Pension Liabilityg Index. "We have been anticipating a decline in long Aa corporate bond yields for some and in May we begann to see a move inthis direction," said , executive director of BNY Mellojn Pension Services, the pensio services arm of BNY Mellon Asseg Management.
"The 40 basis-point decline we observedf in May lowered the discountg rate for these bondsto 6.85 percen and drove pension plan liabilities higher. We remain wary of a continuede decline in corporatebond yields, which would further increase pensionb plan liabilities." Austin noterd that Standish Mellon Asset Management Company LLC, the fixedx income specialist for BNY Mellon Asse t Management, continues to see pensioj plans increase their allotments to long-term investment-grade corporater bonds to protect themselves against the risk of highet liabilities.
"Plan sponsors are becominv more knowledgeable of the opportunities available for protectinf plan funded status from changes in interest For manyplan sponsors, long-term corporate bonds offerr a very attractive solution. We are also seein increasing optimism among plan sponsors that the equity market rally will allowing sponsors to recapture the funding lost so quickly duriny Q4 2008 andQ1 2009.
" BNY Mellon Assety Management is the umbrella organization for The Bank of New York Mellob Corporation's affiliated investment management firma and global distribution The Bank of New York Mellon Corporationh is a global financial services companuy focused on helping clientsa manage and service their financial assets, operatinf in 34 countries and serving more than 100 The company is a leading provider of financial servicews for institutions, corporations and high-net-worth providing superior asset managemen t and wealth management, asset issuer services, clearing services and treasur y services through a worldwide client-focuseed team. It has $19.
5 trillion in assetsd under custodyand $881 billion in assete under management, services more than $11 trillion in outstanding debt and processea global payments averaging $1.8 trillion per day. Additionalp information is availableat . All informatiomn source BNY Mellon Asset Management as at 31Marcyh 2009, except where This press release is issueed by BNY Mellon Asset Management to membera of the financial press and medias and the information contained herein should not be construed as investment advice. Past performance is not a guidd tofuture performance.