The aggregate funding ratio for U.S. state pension plans decreased by 12.2 percentage points to 62.6% during the first quarter, Wilshire Consulting estimates.
The quarterly change in funding resulted from a 15.7% decrease in asset values and a 0.7% increase in liability values.
The aggregate funding ratio is estimated to have decreased 9.3 percentage points for the 12 months ended March 31.
"The first quarter's decrease in funded ratios was driven by stress in the financial markets due to the COVID-19 pandemic, particularly in March," said Ned McGuire, managing director and a member of the investment management and research group of Wilshire Consulting, in a news release. "For most asset classes, returns were negative for the quarter."
Mr. McGuire added that the funding ratio for state plans as of March 31 "is now at its lowest level in the 30 years that Wilshire has been aggregating" this data.