The estimated funded status of the 100 largest U.S. public defined benefit pension plans rose to 79.9 per cent in June, from 79.4 per cent at the end of May, according to a new report by Milliman Inc.
It found public DB plans in the report saw individual estimated returns ranging between 0.4 per cent and 2.1 per cent. The asset value of the plans in the index increased from $4.9 trillion as of May 31, 2024, to $5 trillion as of June 30, 2024. The plans also gained a $50 billion market value during the month, which was offset by a net negative cash flow of roughly $9 billion.
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According to the report, the deficit between estimated plan assets and liabilities decreased from $1.29 trillion at the beginning of June to $1.26 trillion at month’s end, representing a $27 billion increase in funded status. However, it also noted the total pension liability continued to grow among the group to an estimated $6.29 trillion as of June 30, up from $6.28 trillion as of May 31.
“June’s positive market growth pushed two more plans over the 90 per cent funded mark as of June 30,” said Becky Sielman, co-author of Milliman’s index, in a press release. “Currently, 25 plans stand above this benchmark, compared to 23 at the end of May. The lower end of the spectrum remains consistent, with 15 plans at less than 60 per cent funded.”
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