Public pension funding ratios dipped just below 80% in March, according to the Milliman 100 Public Pension Funding index.
As of March 31, Milliman’s estimated funding ratio was 79.5%, down from 81.1% the month before, primarily due to negative investment returns.
Milliman’s estimated aggregate investment return for March was -1.6%, and individual public pension plans experienced estimated investment returns ranging from -3.1% to -0.1% for the period.
Estimated assets totaled $5.2 trillion as of March 31, down from $5.29 trillion a month earlier, while estimated liabilities totaled $6.54 trillion, up from $6.52 trillion as of Feb. 28.
The market volatility in March pushed five plans below the 90% funding level during the period, leaving only 25 of the largest 100 public pension plans above that threshold, said Rebecca Sielman, principal and consulting actuary at Milliman and author of the Milliman 100 Public Pension Funding index, in a news release April 18.
“Still, on the lower end of the spectrum, only 12 plans are less than 60% funded, compared to 11 last month, in an optimistic sign for the overall health of public pensions,” Sielman said.
Sixty-three plans have funding ratios between 60% and 90%, up from 59 at the end of February.
