|
Laxman Pai, Opalesque Asia: U.S. public pension funding during Q2 2020 rebounded gaining $308 billion in the market value of assets and reversing Q1 losses, said a study.
Milliman's Public Pension Funding Index (PPFI), which consists of the nation's 100 largest public defined benefit pension plans, saw investment returns of approximately 10.72% for the quarter, nearly completing the recovery from the -10.81% returns suffered in Q1.
The estimated funded ratio for these pensions rebounded from 66.0% at the end of March 2020 to 71.2% at the end of June 2020.
"While public pension funding status has improved dramatically over the past three months, the longer-term economic impact of COVID-19 on funding remains uncertain," said Becky Sielman, author of the Milliman 100 Public Pension Funding Index.
"Returns for the past twelve months ending June 2020 averaged just 3.84% - markedly lower than plan sponsor reported funding interest rates - which means the 2019-2020 reporting year will likely go into the books as a year of modest investment losses, despite the Q2 rally," Becky added.
As of Q2 2020, there are 12 PPFI plans above the 90% funded mark; just four plans stood above this benchmark at the end of Q1 2020.
Meanwhile, at the lower end of the spectrum, seven plans moved above 60% funded, bringing the total number of plans under this mark to 28, down from 35 at Q1 2020. ...................... To view our full article Click here
|
RSS
