The pressures and frustrations many pension plan sponsors have experienced in the past decade over volatility in the capital markets and the evolution of pension funding and accounting rules have understandably left them confused and, perhaps, unsure on how to manage their defined benefit (DB) plans. Fortunately, now the pension environment is actually improving. The 2007 Milliman Pension Funding Study, which examines the financial reports of 100 large U.S. corporations with DB plans, found that liability increases slowed in 2006 as a result of increases in discount rates. The year's strong investment returns also boosted asset levels, thus driving plans' funded status to almost 100%.