The overall estimated funding ratio of the 100 largest U.S. public pension plans reached 78.2% at the end of December, the highest level of 2023, according to the Milliman 100 Public Pension Funding index.
After three straight months of declines due to negative market returns in August through October, the estimated ratio rose for the second straight month in December. As of Nov. 30, the estimated ratio has risen to 75.9% from 72.4% at the end of October.
The late-year rally came as a result of a market rebound in both November and December. According to Milliman, aggregate estimated investment gains were 5.2% in November and 3.3% in December.