Public pension funding ratios remained steady just above 80% in February, according to the Milliman 100 Public Pension Funding index.
As of Feb. 28, Milliman’s estimated funding ratio was 81.1%, the same as the prior month primarily due to flat investment returns.
Milliman’s estimated aggregate investment return for February was 0.3%, and individual public pension plans experienced estimated investment returns ranging from -0.3% to 2.1% for the period.
The returns were just enough to offset increases in liabilities during February, and while the overall estimated funding ratio remained the same, one pension plan did slip below the 90% funding ratio mark, said Rebecca Sielman, principal and consulting actuary at Milliman and author of the Milliman 100 Public Pension Funding index, in a March 20 news release.
“Thirty plans now stand above this benchmark, while 11 remain less than 60% funded. Still, the plans’ continued funded ratio of 81.1% is just shy of the highest level seen in three years in a sign of stability for public pensions,” Sielman said.
Fifty-nine plans have funding ratios between 60% and 90%, up from 53 at the end of January.
Estimated assets totaled $1.233 trillion as of Feb. 28, up from $1.227 trillion a month earlier, while estimated liabilities totaled $6.523 trillion, up from $6.508 trillion as of Jan. 31.
