Public pension funding topped key threshold on stock-market gains

  • 📰 MarketWatch
  • ⏱ Reading Time:
  • 46 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 22%
  • Publisher: 97%

Malaysia News News

Malaysia Malaysia Latest News,Malaysia Malaysia Headlines

An 80% funded ratio is often loosely considered a satisfactory level, even as most employers formally aim for full funding.

Public pension-plan funding topped a key benchmark for the first time in tracking history during the second quarter, buoyed by surging financial markets, according to a report released in July.

An 80% funded ratio is often loosely considered a satisfactory level for pensions sponsored by state and local governments and other municipal entities, even as most employers formally aim for full funding — that is, enough money on hand to cover all existing workers and retirees for the next 30 years.

Milliman estimates aggregate returns for the plans tracked to be 4.26% for the quarter, while the overall annualized return for the year ending June 30 was 19.95%. As the group points out, that kind of return “significantly exceeds the expected long-term earnings assumptions” for plans it covers. As previously reported, many public pension plan administrators have been reducing their assumptions for returns, believing that lower, more conservative assumptions are safer. Among state pensions, the median assumed return in 2021 is 7.20%, down about 1 percentage point since 2000.

We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 3. in MY
 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.

I entrusted Henry_Fx1 with my money since I took rush of investing my money with his platform, and since then I've recovered all I lost to scams. Get in touch with Henry_Fx1 and get a good mentorship and safe trading.

nice

Malaysia Malaysia Latest News, Malaysia Malaysia Headlines