Stagnant Returns Produce Lower Public Pension Funded Levels in January
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.
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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.
Public pension funding shortfall is expected to flatline at $1.49 trillion and the funded ratio is expected to rise marginally to 77.4%, marking a return to the stagnation of the post-Great Recession era