The funded status of the 100 largest corporate defined benefit pension plans fell by $2 billion during June, as measured by the Milliman 100 Pension Funding Index (PFI). A minor decrease in the benchmark corporate bond interest rates resulted in a $1 billion increase in pension liabilities. Pension assets also decreased on the same order due to subpar investment returns. As a result, the funded status ratio had a modest decrease from 109.6% at the end of May to 109.5% as of June 30—still well ahead of the 106.1% funded ratio seen at the start of 2026.
June’s investment return of 0.42% was below expectations and caused the market value of PFI plan assets to fall from $1.324 trillion as of May 31 to $1.323 trillion as of June 30. By comparison, the 2026 Milliman Pension Funding Study reported that the monthly expected investment return for FY2025 was 0.53% (6.61% annualized). The full results of the annual 2026 study can be found at www.milliman.com/pfs.
The Milliman 100 PFI projected benefit obligation increased to $1.208 trillion during June. The change resulted from a 1 basis point (bps) decrease in the monthly discount rate, from 5.62% in May to 5.61% for June. June’s discount rate is still 15 bps higher than the 5.46% discount rate seen at the start of 2026.
Highlights
| $ BILLION | FUNDED PERCENTAGE | |||
|---|---|---|---|---|
| MV | PBO | FUNDED STATUS | ||
| May | 1,324 | 1,208 | 117 | 109.6% |
| June | 1,323 | 1,208 | 114 | 109.5% |
| Monthly change | (1) | +1 | (2) | -0.1% |
| YTD change | +18 | (22) | +39 | 3.4% |
Note: Numbers may not add up precisely due to rounding
Q2 2026 summary
The quarter ending June 30, 2026, provided a boost for corporate pensions. Plan assets grew by $41 billion while plan liabilities increased by only $2 billion. The investment return was a robust 4.81% during the second quarter and had a significant impact on the funded status improvement. Discount rates fell by 4 bps and provided a minor offset to the funding improvement. The net balance sheet impact was a funded status improvement of $39 billion. The funded status surplus grew to $114 billion by the end of the second quarter. The funded ratio of the Milliman 100 companies increased from 106.3% at the end of March to 109.5% at the end of June.
Over the last 12 months (July 2025–June 2026), the cumulative asset return for these plans was 10.67%, and the Milliman 100 PFI funded status position improved by $62 billion. The funded status increase was primarily the result of positive market returns. Discount rates experienced a net increase of 9 bps, to 5.61% from 5.52% one year ago. The funded ratio of the Milliman 100 companies has improved over the past 12 months, from 104.3% to 109.5%.
Figure 1: Milliman 100 Pension Funding Index — Pension surplus/deficit
Figure 2: Milliman 100 Pension Funding Index — Pension funded ratio
2026-2027 projections
If the Milliman 100 PFI companies were to achieve the expected 6.61% asset return (as per the 2026 PFS), and if the current discount rate of 5.61% remains unchanged throughout 2026 and 2027, we forecast that the funded status of the surveyed plans will increase. The pension surplus is projected to be $121 billion (funded ratio of 110.1%) by the end of 2026 and $134 billion (funded ratio of 111.2%) by the end of 2027. For purposes of this forecast, we have assumed 2026 and 2027 aggregate annual contributions of $15 billion.
Under an optimistic forecast with rising interest rates (reaching 5.91% by the end of 2026 and 6.51% by the end of 2027) and annual asset returns of 10.61%, the funded ratio is projected to climb to 116% by the end of 2026 and 129% by the end of 2027. Under a pessimistic forecast with similar interest rate and asset movements (5.31% discount rate at the end of 2026 and 4.71% by the end of 2027 and 2.61% annual asset returns), the funded ratio is projected to decline to 105% by the end of 2026 and 95% by the end of 2027.
Milliman 100 Pension Funding Index - June 2026 (all dollar amounts in millions)
Pension asset and liability returns
About the Milliman 100 Pension Funding Index
For the past 26 years, Milliman has conducted an annual study of the 100 largest defined benefit pension plans sponsored by U.S. public companies. The Milliman 100 Pension Funding Index projects the funded status for pension plans included in our study, reflecting the impact of market returns and interest rate changes on pension funded status, utilizing the actual reported asset values, liabilities, and asset allocations of the companies’ pension plans.
The results of the Milliman 100 Pension Funding Index were based on the actual pension plan accounting information disclosed in the footnotes to the companies’ annual reports for the 2025 fiscal year and for previous fiscal years. This pension plan accounting disclosure information was summarized as part of the Milliman 2026 Pension Funding Study, which was published on April 21, 2026. In addition to providing the financial information on the funded status of U.S. qualified pension plans, the footnotes may also include figures for the companies’ nonqualified and foreign plans, both of which are often unfunded or subject to different funding standards than those for U.S. qualified pension plans. They do not represent the funded status of the companies’ U.S. qualified pension plans under ERISA.