Volatility Has Little Effect on Public Pension Funded Levels in March

The funded ratio of the 100 largest U.S. public pensions rose despite interest rate hike, banking failures.


The funded ratio of the 100 largest U.S. public pension plans increased to 74.5% as of the end of March, from 73.6% at the end of February, improving the plans’ funded status by $54 billion, according to consulting firm Milliman’s Public Pension Funding Index.

The increase was attributed to market performance, as the plans earned an estimated 1.8% in aggregate for the month, with individual plans’ estimated returns ranging from 0.7% to 2.8%.

Milliman said that despite a “a significant amount of market activity during March,” including yet another interest rate hike by the Federal Reserve and notable banking failures, the effect on the largest 100 pension plans was relatively small.

“Although March was a volatile month in the financial markets with another Fed rate hike and turmoil in the banking industry, investment performance for the country’s largest public pension plans was modestly positive for the period,” Becky Sielman, co-author of Milliman’s PPFI, said in a release.

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According to the firm, the deficit between the estimated assets and liabilities narrowed modestly during the month to $1.534 trillion from $1.588 trillion. The plans’ aggregate asset value increased to $4.492 trillion as of March 31, from $4.423 trillion as of February 28. The plans also increased their market value by approximately $78 billion, which was partially offset by a net negative cash flow of $9 billion.

The total pension liability grew during the month to an estimated $6.026 trillion from $6.011 trillion. Like pension assets, the total pension liability grows over time with investment income and shrinks as benefits are paid; it also grows as active members accrue pension benefits.

The market performance was small enough during the month that it did not change the number of plans below 60% funded or above 90% funded. Milliman said that 24 plans remain less than 60% funded, and 17 remain more than 90% funded.

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Bernstein Private Wealth Management Promotes Alex Chaloff to CIO

His co-head of investment and wealth strategies, Beata Kirr, leaves to join private investing firm The Copia Group.

Alex Chaloff

AllianceBernstein’s Bernstein Private Wealth Management has promoted Alex Chaloff to the newly created position of CIO.

Chaloff, who oversees Bernstein’s $113 billion platform, will lead a team of strategists involved in investments and wealth planning, including asset allocation advice, investment platform oversight, model portfolio construction, new product development, manager research, tax planning and solutions and estate planning research. He will also be in charge of the firm’s investment partnerships and other outside managers dealing with traditional and alternative asset classes.

“Under Alex’s investment leadership, Bernstein Private Wealth has successfully evolved into the investment manager we are today,” Onur Erzan, head of Bernstein Private Wealth and AB Global Client Group, said in a release. “Alex has a passion for our firm and culture, and his strong commitment to our clients is continuously reflected in his investment decisions and asset allocation advice.”

Chaloff joined Bernstein Private Wealth Management in 2005 as a senior portfolio manager and was promoted to head of alternative asset strategies in 2017. In 2020, he was named co-head of investment strategies along with Beata Kirr, and in 2022 the two were tapped as co-heads of investment and wealth strategies.

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Kirr led the firm’s cross-asset class responsible investing portfolio evolution and created the Investment Committee for Bernstein Impact Alternatives, its custom private equity and venture capital impact fund. Kirr is leaving the company to become chief impact officer at private investing firm The Copia Group.

“We celebrate Beata’s many contributions to the firm over her 16-year career with Bernstein, including leadership of our Purpose Driven platform and our Women & Wealth programming,” Erzan said. “We wish Beata great success in the next chapter of her career, as she departs to focus fully on the launch of a new impact investing alternative manager.”

Prior to joining Bernstein Private Wealth Management, Chaloff was manager director at Wilshire Associates for more than four years, according to his LinkedIn profile. He earned his bachelor’s degree in government and politics at the University of Maryland and his MBA in corporate finance at the University of Southern California’s Marshall School of Business.

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