The overall estimated funding ratio of the 100 largest U.S. public pension plans fell to 77.7% at the end of January, according to the Milliman 100 Public Pension Funding index.

The fall in funding ratio from the year-end number of 78.2% was the result of flat investment returns and rising liabilities.

According to Milliman, the aggregate estimated investment return for January was zero, with estimated returns ranging from -1% to 1.1% for the month.

“Despite January’s lack of investment gains and the drop in funded status, 21 plans remain more than 90% funded, the same number as last month,” said Rebecca Sielman, principal and consulting actuary at Milliman and author of the Milliman 100 Public Pension Funding index, in a Feb. 27 news release. “At the other end of the spectrum, only 15 plans are less than 60% funded, the same as in December, reflecting overall stability in public pensions.”

Also as of Jan. 31, a total of 20 plans had funding ratios between 60% and 70%, 20 plans were between 70% and 80%, and 24 plans were between 80% and 90%, all the same as December.

Because of the flat investment returns and net negative cash flow, estimated assets dropped to $4.837 trillion as of Jan. 31 from $4.857 trillion a month earlier, while liabilities grew to an estimated $6.226 trillion from $6.213 trillion.

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