By: Russ Kamp, CEO, Ryan ALM, Inc.
Milliman has provided the latest update for its monthly Public Pension Funding Index (PPFI). As a reminder, the PPFI analyzes data from the nation’s 100 largest public defined benefit plans.
According to Milliman plan funded status improved by $266 billion during April, as aggregate investment returns advanced an estimated 4.7% for the month. This improvement propelled the plans’ collective funded ratio to 87.6% as of April 30, 2026. This proved to be a significant improvement to the 83.7% witnessed at the end of March. It also surpassed the 87% funded ratio achieved as of February 28th. Individual plan returns are estimated to have ranged from 1.6% to 7.7%. That is quite a performance gap for one month.
It is estimated that during April, PPFI’s plan assets increased by $291 billion, topping $6 trillion, while the total pension liability rose modestly, to $6.860 trillion from $6.843 trillion as of March 31. Please remember that pension liabilities under GASB accounting use the ROA as the discount rate. If FASB accounting had been used, liability growth would have been negative for the month and the improvement in the collective funded ratio that much better. However, that is not the case, and as a result, the deficit between estimated plan assets and liabilities narrowed from $1.12 trillion to $851 billion as of April 30th.
“Thanks to April’s rebound, nearly half of the 100 largest public pension plans are now more than 90% funded,” said Ryan Falls, co-author of the Milliman PPFI. However, public pension plans would be wise to try and protect this improved funding, especially given the uncertainty that we currently live under. For the complete report, please click on the link below.
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