Milliman analysis: Public pension funded ratio rises to 80.8% in July, topping 80% mark for first time since March 2022

Milliman PPFI plans gain $56 billion in funding improvement after third straight month of market gains

Milliman, Inc., a premier global consulting and actuarial firm, today released the results of its latest Public Pension Funding Index (PPFI), which analyzes data from the nation’s 100 largest public defined benefit plans.

Thanks to a third consecutive month of market gains in July, the Milliman 100 PPFI funded ratio improved from 79.9% as of June 30 to 80.8% as of July 31. The PPFI plans saw estimated aggregate investment returns of 1.6% in July, with individual plans’ estimated returns ranging from 0.6% to 2.9%. The plans gained market value of approximately $79 billion during the period, offset by a net negative cash flow of around $10 billion. The deficit between estimated plan assets and liabilities decreased from $1.266 trillion at the beginning of July to $1.210 trillion at month’s end, representing a $56 billion increase in funded status.

“Strong market performance in July pushed the PPFI plans’ funding levels above the 80% mark for the first time in nearly two and a half years,” said Becky Sielman, co-author of Milliman’s PPFI. “Thanks to this growth, an additional two plans surpassed the 90% funding level in July, leaving 27 plans above this benchmark and only 15 plans 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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