A Third of Public Pension Plans Reduced Interest Rate Assumptions
A third of public pension plans have reduced their interest rate assumptions, a study from Milliman finds. The study looked at the funded status of the 100 largest U.S. public pension plans.
According to the study as of June 30, 2017, the aggregate funded ratio is estimated to be 70.7%. Milliman also found the difference between the sponsor reported discount rate and an independently determined assumption continues to widen, which indicates further reductions are likely.
Total plan assets as of 2016 fiscal year ends stood at $3.19 trillion, down from $3.24 trillion as of the prior fiscal year ends. But, market performance was strong, and Milliman estimates that aggregate plan assets have grown to $3.44 trillion as of June 30, 2017.