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.
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.
However, only half of the state and local retirement systems exceeded their assumed rate of return for the year.
The Equable Institute’s State of Pensions 2023 report claims that ‘pension funds are addicted to risk.’
The funded ratio for the 100 largest public funds dropped to less than 73%, while corporate plans rose to 110%.
Common Retirement Fund reports 8.24% loss amid volatile markets, rising inflation and war.
Preliminary 2022 investment losses are estimated at 10.4% on average for state and local plans.