Returns for the 100 largest U.S. public plans during the month ranged from a loss of 1% to a gain of slightly more than 1%, per Milliman.
The stock market rebound in November and December spurred a $349 billion increase in the 100 largest U.S. public plans’ funding, per Milliman.
Interest rates and market volatility continue to pose a significant risk for many plans.
However, only half of the state and local retirement systems exceeded their assumed rate of return for the year.
Funded levels for US public pension funds rose nearly 2 percentage points to 78.2% during the second quarter.
The 100 largest public plans saw an aggregate investment loss of 1% during the month.
In a tough time for investments, the fund logs a 1% portfolio increase.
Market slump causes $262 billion drop in U.S. public pensions’ funding levels in June.
Preliminary 2022 investment losses are estimated at 10.4% on average for state and local plans.