The aggregate funding ratio for U.S. state pension plans increased by 1.4 percentage points to 73% during the second quarter, according to Wilshire Consulting.
The quarterly change in funding resulted from a 2.6% increase in asset values partially offset by a 0.7% increase in liabilities. The aggregate funding ratio is estimated to have increased 6.8 percentage points year-to-date and 1.5 percentage points for the trailing 12 months.
Over the trailing 12 months, Wilshire estimates that the funding ratio increased by 1.5%, driven by the estimated 7.5% return on assets and contributions. If it weren't for contributions, Wilshire estimated that the funding ratio would be 3.1 percentage points lower, at 69.9%.
"The second quarter's rise in funding ratios was propelled by the best performance for June in Wilshire 5000 history," said Ned McGuire, managing director and a member of the investment management and research group of Wilshire Consulting, in a news release. "The 2.6% increase in asset values during the second quarter compounded the 9% asset increase during the first quarter of 2019."