Milliman annual Public Pension Funding Study finds public pensions shifted portion of equity, fixed-income assets to private equity and real estate
Milliman, Inc., has released the results of its annual Public Pension Funding Study (PPFS), which explores the funded status of the nation’s 100 largest public defined benefit pension plans.
The 2023 PPFS is based on Milliman’s independent analysis and data from the public plans’ most recent fiscal year-end reports (measurement dates as of June 30, 2022, for three-quarters of the plans in the study). It includes detailed analysis of cash flows, cost of benefits and total pension liability, as well as funding projections through Nov. 30, 2023.
After peaking at 85.5 percent as of Dec. 31, 2021, the aggregate funded ratio of the Milliman 100 PPFS plans shed more than 15 percent in the following nine months and has hovered in the low- to mid-70 percent since then. As of Nov. 30, 2023, the firm estimates the PPFS funded ratio is 75.9 percent.
The PPFS also reviews asset allocations over time and found a notable change in 2023, when the plans trimmed th