The overall estimated funding ratio of the 100 largest U.S. public pension plans bounced back in May thanks to strong investment returns for the month, according to the Milliman 100 Public Pension Funding index.

The increase in the funding ratio to 79.4% as of May 31 from the estimate of 77.6% as of April 30 was primarily the result of positive market performance in May, almost completely reversing a weak April for investment returns. The estimated funding ratio at the end of March had been 79.7%.

According to Milliman, the aggregate estimated investment return for May was 2.3%, with estimated returns ranging from 1.3% to 3.5% for the month.

“May’s strong markets erased most of the losses experienced in April and helped two more plans climb above 90% funding,” said Rebecca Sielman, principal and consulting actuary at Milliman and author of the Milliman 100 Public Pension Funding index, in a June 17 news release. “Now, 23 of the plans stand above this key benchmark, while only 15 plans — the same number as the last two months — are less than 60% funded.”

Also as of May 31, a total of 16 pension plans had funding ratios between 60% and 70% (down from 20 as of April 30), 20 plans were between 70% and 80% (the same as in April), and 26 plans were between 80% and 90% (up from 24).

Estimated assets jumped to $4.989 trillion as of May 31 from $4.864 trillion a month earlier, while liabilities grew to an estimated $6.282 trillion from $6.268 trillion.

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