The aggregate funded ratio for US state pension plans increased by an estimated 2.0 percentage points during the first quarter of 2021 to end the month at 81.3 per cent, according to Wilshire, a diversified global financial services firm.
Through its suite of Outsourced Chief Investment Officer (OCIO) and advisory services, Wilshire assists in ensuring secure and safe retirements for millions of Americans, including those participating in some of the nation’s largest corporate and public retirement plans.
The quarterly change in funding resulted from a 3.3 percentage point increase in asset values and a 0.8 percentage point increase in liability values. The aggregate funded ratio is estimated to have increased by 2.0 and 18.0 percentage points during the first quarter and over the trailing twelve months, respectively.
“The first quarter’s increase in funded ratio capped an unprecedented trailing twelve-month asset returns with the Wilshire 5000 Total Market IndexSM up over 60 per cent over this period,” says Ned McGuire, Managing Director, Wilshire. “The funded ratio, as of the end of the first quarter, is at its highest level since Wilshire has been aggregating data for state pension plans on a quarterly basis and since Wilshire’s 2007 state funding study on an annual basis.”