Median Interest Rate Used By Public Pension Plans Drops

The median interest rate used by public pension plans dropped from 8% to 7.75%, according to Milliman 2013 Public Pension Funding Study.

Milliman 2013 Public Pension Funding Study analyses the funded status of the 100 largest U.S. public pension plans.

Lowered interest rate assumptions

Milliman study observes 29 of the 100 plans in the study have lowered their interest rate assumptions since the Milliman’s 2012 study. The median interest rate used by the plans decreased from 8% in 2012 to 7.75% in the 2013 study.

Rebecca A. Sielman, principal author and project coordinator of the study feels this drop is in line with a generally declining market consensus on expected long-term investment...