The overall estimated funding ratio of the 100 largest U.S. public pension plans rose in January after falling in December, according to the Milliman 100 Public Pension Funding index.
As of Jan. 31, Milliman’s estimated funding ratio was 81.1%, up from 80% a month earlier primarily due to positive investment returns. The month represented a bounce back from a negative December, in which the estimated funding ratio had dropped from 81.7% as of Nov. 30.
Milliman’s estimated aggregate investment returns of 1.9% in January helped offset some of the losses experienced in December, which saw an estimated aggregate loss of 1.7%.
“Recent market volatility caused two plans to slip below the 90% funded mark since November, with 31 plans above this level as of Jan. 31,” 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 lower end of the spectrum, 11 plans are less than 60% funded, which is unchanged from November in a positive sign for public pensions,” Sielman said.
