U.S. Pensions’ funded status dropped 12.7 percentage points over the full year 2011 to 72.4%, thanks to a sharp increase in liabilities that outpaced any rise in plan assets, according to BNY Mellon.

In its December Pension Summary Report, BNY Mellon said liabilities, which are calculated using yields of investment-grade corporate bonds (lower yields imply higher liabilities), rose 20% over the year. Meanwhile, assets increased about 2.7% for the typical plan in 2011.

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