Milliman analysis: Public pension funded ratio slips to 77.6% in April after market declines
May 17 2024 - 3:37PM
Business Wire
Milliman PPFI plans lose $133 billion in
funded status after -2.1% aggregate monthly returns
Milliman, Inc., a premier global consulting and actuarial firm,
today released the latest results of its Public Pension Funding
Index (PPFI), which analyzes data from the nation’s 100 largest
public defined benefit plans.
After two straight months of positive market performance,
April’s investment losses caused the Milliman 100 PPFI funded ratio
to drop from 79.7% as of March 31 to 77.6% as of April 30. In
aggregate, the PPFI plans saw estimated investment returns of -2.1%
in April, with individual plans’ estimated returns ranging from
-3.7% to -0.9%. These losses caused the plans to shed approximately
$110 billion in market value for the month, on top of a net
negative cash flow of about $9 billion. The deficit between
estimated plan assets and liabilities widened from $1.271 trillion
on March 31 to $1.404 trillion as of April 30.
“April’s market pullback caused four of the 100 PPFI plans to
slip from just above to just below 90% funded,” said Becky Sielman,
co-author of Milliman’s PPFI. “Now only 21 of the plans stand above
this key benchmark, while 15 plans—the same number as last
month—are less than 60% funded.”
For more information, and to view the full Milliman 100 Public
Pension Funding Index, go to http://www.milliman.com/ppfi/. To see
Milliman’s full range of annual Pension Funding Studies, go to
https://www.milliman.com/en/retirement-and-benefits/pension-funding-studies.
To receive regular updates of Milliman’s pension funding analysis,
contact us at pensionfunding@milliman.com.
About Milliman
Milliman is among the world's largest providers of actuarial,
risk management, and technology solutions. Our consulting and
advanced analytics capabilities encompass healthcare, property
& casualty insurance, life insurance and financial services,
and employee benefits. Founded in 1947, Milliman is an independent
firm with offices in major cities around the globe. Visit us at
milliman.com.
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Becky Sielman Milliman, Inc. Tel: +1 860 687 0125
becky.sielman@milliman.com