24Oct

U.S. state pension plans’ funding ratios fall in Q3

News , ,

U.S. state pension plans’ aggregate funding ratios fell in the third quarter to the lowest level since the end of 2022, according to Wilshire Advisors estimates.

For the quarter ended Sept. 30, the estimated ratio dropped by 3 percentage points from three months earlier to 75.2%, the result of an estimated 3% decrease in asset values exacerbated by an estimated 0.8% increase in liability values.

It is the lowest estimated ratio since Dec. 31, when Wilshire estimated an aggregate funding ratio of 73.6%. The September level is down from a peak of 79.9% as of July 31.

Ned McGuire, managing director at Wilshire Advisors, said in an Oct. 23 news release that nearly all asset classes experienced negative returns for the third quarter, leading to the drop in asset value.

Wilshire’s assumed asset allocation of U.S. state pension plans is 31% domestic equities, 23% core fixed income, 15% real assets, 14% international equities, 13% private equity and 4% high-yield bonds.

 

Read more @pionline

Related Posts

06May

US. Prudential Survey Reveals Insights on Retirement Planning

Prudential conducted a survey of 198 financial advisors to gain insight on how they are investing and constructing portfolios for retirees.... read more

06May

UK. Retirement warning as global ‘market volatility’ could hurt ‘value of pensions’

Older Britons are being warned that recent global events could be impacting the “value of some pensions”. Experts from PensionBee are urging pensioners... read more

06May

Only 18% of Ghanaians confident about retirement – Old Mutual Financial Services Monitor

Only 18% of Ghanaians confident about retirement – the Old Mutual Financial Services Monitor The Old Mutual Financial Services Monitor... read more

06May

Nigeria’s Liabilities to Retirees Under Contributory Pension Scheme Hits N314.58bn

The National Pension Commission (PenCom) has disclosed that the federal government’s total liability from the implementation of the pension... read more

06May

China. 1.07 billion people in basic pension scheme

China has been improving its social insurance system to better support development, with the number of participants in the... read more

03May

UK. Average overall pension transfer times fall by 12.2%

The average time taken for a pension transfer to be completed reduced by 12.2% over the last 15 months,... read more

03May

Venezuelan National Assembly Approves Pension Protection Bill

The National Assembly of Venezuela approved on Thursday in the first discussion, the Social Security Pension Protection Bill, after... read more

03May

The ‘father of the 401(k)’ talks about the death of pensions, the future of retirement, and what disturbs him about his own creation

Americans have a lot of anxiety around retirement. Many people are dipping into their nest eggs to make ends meet amid soaring inflation,... read more

03May

Canadian Pensions Returned 2.5% in the First Quarter

Canadian institutional defined benefit plans returned 2.5% in Q1 2024, according to the Northern Trust Canada Universe, a tracker which measures the... read more

02May

US. The Longevity Question

In his annual letter, BlackRock CEO Larry Fink stressed the need to find solutions to the concerns Americans face... read more