Public pension plans’ funded ratio fell in the last quarter of 2016, says a recent report.
Milliman, in a review of its 100 Public Pension Funding Index (PPFI), reports that the funding ratio of the 100 largest government-sponsored pension plans in the United States fell to 70.1%, which translates to a financial loss of $54 billion.
Milliman’s analysis of the PPFI in the 4th quarter shows that its collective deficit rose from $1.338 trillion to $1.392 trillion. That led to a 1 percentage point drop in the funded ratio from the 3rd quarter. The pension liability also rose slightly, Milliman says, from $4.620 trillion in the 3rd quarter to $4.659 in the next.
And while the deficit and pension liability rose, the plans’ asset value dropped slightly. It stood at $3.282 trillion at the end of the 3rd quarter, and fell to $3.267 trillion in the 4th.
The plans realized $11 billion in investment income, but paid out more than twice that figure in benefits, Milliman says.
Milliman, in a review of its 100 Public Pension Funding Index (PPFI), reports that the funding ratio of the 100 largest government-sponsored pension plans in the United States fell to 70.1%, which translates to a financial loss of $54 billion.
Milliman’s analysis of the PPFI in the 4th quarter shows that its collective deficit rose from $1.338 trillion to $1.392 trillion. That led to a 1 percentage point drop in the funded ratio from the 3rd quarter. The pension liability also rose slightly, Milliman says, from $4.620 trillion in the 3rd quarter to $4.659 in the next.
And while the deficit and pension liability rose, the plans’ asset value dropped slightly. It stood at $3.282 trillion at the end of the 3rd quarter, and fell to $3.267 trillion in the 4th.
The plans realized $11 billion in investment income, but paid out more than twice that figure in benefits, Milliman says.
- Log in to post comments