Pensions
Public Pension Funded Ratios Register 1st Decline Since April
The funded ratio for the 100 largest U.S. public pension plans fell by 160 basis points in October.
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.
Asset gain of $308 billion in April-June period lifts estimated funded ratio to 71.2% from 66%.
But market volatility caused by the coronavirus threatens to erase some of the gains.
Interest, new benefit accrual boosts total pension liability to almost $5 trillion.