Milliman Report: Public Pension Funded Ratio Rises to 82.8% in September After Five Consecutive Months of Market Gains
Milliman, Inc., a leading global consulting and actuarial firm, has released the latest results of its Public Pension Funding Index (PPFI), analyzing data from the nation’s 100 largest public defined benefit plans.
In September, the PPFI funded ratio increased from 82.0% on August 31 to 82.8% on September 30, driven by five consecutive months of market gains. The PPFI plans experienced estimated investment returns of 1.4% for the month, with individual plan returns ranging between 0.7% and 2.1%. This resulted in an approximate $72 billion increase in market value, offset by a net negative cash flow of around $10 billion. The deficit between plan assets and liabilities narrowed slightly, from $1.138 trillion at the start of September to $1.090 trillion by the month’s end—a $48 billion improvement in funded status.
“September’s positive asset performance lifted five additional plans above the 90% funded mark as of September 30,” said Becky Sielman, co-author of Milliman’s PPFI. “Currently, 34 plans have exceeded this benchmark, compared to 29 in the previous month. At the lower end, 14 plans remain less than 60% funded, down from 15 plans in August.”
For the full Milliman 100 Public Pension Funding Index, visit Milliman PPFI. To explore Milliman’s annual Pension Funding Studies, visit Pension Funding Studies. For regular updates, contact Milliman at [email protected].
About Milliman
Milliman combines expert actuarial insight with cutting-edge technology to deliver solutions for global risks. Assisting both public and private sectors, Milliman helps clients manage critical challenges, from market instability to rising health costs, across industries including insurance, financial services, healthcare, and employee benefits. Founded in 1947, Milliman operates independently with offices worldwide. Learn more at milliman.com.”
