By: Russ Kamp, CEO, Ryan ALM, Inc.

Milliman released the latest results of its Public Pension Funding Index (PPFI), which analyzes data from the nation’s 100 largest public defined benefit plans. 

Milliman is reporting that for a second consecutive month above average returns powered asset growth of $115 billion for the constituents of the PPFI for June. The strong asset growth equated to a roughly 2.3% gain during the month, with results for members of the index ranging from 1.5% to 3.6%. As a result, plan assets for the index rose from $5.327 trillion as of May 31 to $5.457 trillion as of June 30.

With the substantial growth in assets, the estimated deficit between plan assets and liabilities declined from $1.242 trillion at the end of May to $1.127 trillion at the end of June, resulting in an improved funded ratio for the index of 82.9% as of June 30, from 81.1% as of May 31. This marks the highest level for the aggregate funded ratio since December 31, 2021. Importantly, 37 of the plans are more than 90% funded, which is an improvement of seven funds since the end of May, while 11 plans remain less than 60% funded.

To view the report, click on this link: View the Milliman 100 Public Pension Funding Index.