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Pensions Took Hit Due to August Market Losses

The stock market downturn in August affected more than stock portfolios — like many a 401(k) balance, it also affected pension plans. Towers Watson in its most recent Pension Finance Watch reports that losses in equity investments drove a drop in its pension index.

Towers Watson said that in August, pension plans’ investments in international stocks suffered the biggest drop in value, 7.4%; investments in stock of the S&P 500 lost 6% and investments in Russell 2500 stocks fell in value by almost as much. And investments in all three now are in negative territory for the year to date.

At the same time, the report says that yields on U.S. Treasury and corporate bonds all grew in August and have shown growth for 2015 and since the same time one year ago.