Rebounding investment markets in April 2026 resulted in a sizable increase in the estimated funded status of the 100 largest U.S. public pension plans, as measured by the Milliman 100 Public Pension Funding Index (PPFI). The PPFI funded ratio stood at 87.6% as of April 30, in stark contrast to the 83.7% observed as of March 31 and closer to the 87.0% mark seen as of February 28, illustrating recent market volatility.
Figure 1: PPFI funded ratio
We have projected the aggregate funded status forward from April 30, 2026, to April 30, 2027, under three scenarios. The baseline scenario assumes each plan’s future investment returns equal that plan’s current reported interest rate assumption (median rate = 7.0% in this study). The “optimistic” and “pessimistic” scenarios assume each plan’s investment returns are 7% higher and lower, respectively, than that plan’s current reported interest rate assumption.
Figure 2: PPFI funded ratio with projections
During April 2026, the deficit between the estimated plan assets and liabilities decreased from $1.117 trillion at the beginning of the month to $851 billion at the end of the month. In aggregate, we estimate the PPFI plans experienced investment returns of 4.7% in April, with individual plans’ estimated returns ranging from 1.6% to 7.7%. The Milliman 100 PPFI asset value increased from $5.726 trillion as of March 31, 2026, to $6.009 trillion as of April 30, 2026. During April, the plans gained market value of approximately $291 billion, which was offset by a net negative cash flow of approximately $8 billion.
Figure 3: PPFI investment returns
The total pension liability (TPL) continues to grow and stood at an estimated $6.860 trillion as of April 30, 2026, up from $6.843 trillion as of March 31, 2026. Just as pension assets grow over time with investment income and shrink over time as benefits are paid, so too does the TPL grow over time with interest and shrink as benefits are paid. The TPL also grows as active members accrue pension benefits.
Figure 4: PPFI funded status
April’s positive asset performance pushed nine plans over the 90% funded mark as of April 30, 2026; now 47 plans stand above this benchmark compared to 38 as of March 31, 2026. Meanwhile, at the lower end of the spectrum, the number of plans less than 60% funded was unchanged at 11.
Figure 5: Funded ratios at April 30, 2026
About the Public Pension Funding Index
This update is an estimate based on Milliman’s 2025 Public Pension Funding Study and was updated for market returns from June 30, 2025, to April 30, 2026. The 2025 annual study encompasses adjustments made as of June 30, 2025, and reflects updated publicly available asset and liability information gathered for the annual study.