Milliman Analysis: Public Pension Funded Ratio Slips for Second Straight Month, to 73.2% at End of September

Market losses erase $128 billion in funded status for Milliman PPFI plans

SEATTLE--(BUSINESS WIRE)--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.

During September, the Milliman 100 PPFI funded ratio slipped from 75.3% as of August 31 to 73.2% as of September 30. This decline was due to a second straight month of investment losses, as the plans experienced estimated aggregate returns of -2.6% in September, with individual plan returns ranging from -4.2% to -1.6% for the period. Combined, the Milliman 100 PPFI lost $128 billion in funded status and their market value decreased by about $104 billion, to $4.477 trillion as of September 30, on top of a net negative cash flow of approximately $10 billion.

“With this performance, another plan fell below the 90% funded mark, so that only 16 plans stood above that benchmark at the end of September,” said Becky Sielman, co-author of Milliman’s PPFI. “At the other end of the spectrum, another two plans—for a total of 25—were less than 60% funded at month’s end.”

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 [e-mail].

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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.