Public-sector pension plans are getting more realistic with their interest rate assumptions, increasing plan liabilities and reducing funded ratios in 2013, according to a study from Milliman.
The median interest rate used by the plans decreased from 8 percent in the Milliman 2012 Public Pension Funding Study to 7.75 percent in the 2013 study.
According to Milliman, the drop is in line with a generally declining market consensus on long-term investment returns. For the Milliman study, the author of the 2013 report used a 7.47 percent rate instead of the 7.65 percent rate it used in the 2012 study.
Continue Reading for Free
Register and gain access to:
- Breaking benefits news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical converage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
