20Sep

U.S. public pension funding falls in August – Milliman

News

The overall estimated funding ratio of the 100 largest U.S. public pension plans fell to 75.3% as of Aug. 31 from 76.8% a month earlier due to a decline in overall market performance, according to the Milliman 100 Public Pension Funding index.

During August, Milliman estimated that public pension plans had an aggregate investment return of -1.6%, with an estimated range of -2.4% to -0.8%.

“With August’s results, only 17 of the 100 PPFI plans now stand over the 90% funded mark, down from 19 last month,” said Rebecca Sielman, principal and consulting actuary at Milliman and author of the Milliman 100 Public Pension Funding index, in a Sept. 18 news release.

“However, the number of plans less than 60% funded remained stable at 23.”

Also as of Aug. 31, a total of 18 plans had ratios between 60% and 70% (up from 16 as of July 31), 21 plans were between 70% and 80% (up from 18), and 21 plans were between 80% and 90% (down from 24).

As a result of the negative investment returns during August, estimated assets dropped to $4.591 trillion from $4.675 trillion a month earlier, while liabilities grew to an estimated $6.099 trillion from $6.085 trillion.

 

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