The estimated funded status of the 100 largest U.S. public pension plans increased from 87.6% as of April 30, 2026, to 89.1% as of May 31, 2026, as measured by the Milliman 100 Public Pension Funding Index (PPFI). This marks the highest funded status reported since the 2016 inception of the PPFI.
Figure 1: PPFI funded ratio
We have projected the aggregate funded status forward from May 31, 2026, to May 31, 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 May 2026, the deficit between the estimated plan assets and liabilities decreased from $851 billion at the beginning of the month to $748 billion at the end of the month. In aggregate, we estimate the PPFI plans experienced investment returns of 2.1% in May, with individual plans’ estimated returns ranging from 0.8% to 3.9%. The Milliman 100 PPFI asset value increased from $6.009 trillion as of April 30, 2026, to $6.129 trillion as of May 31, 2026. During May, the plans gained market value of approximately $128 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 $6.877 trillion as of May 31, 2026, up from $6.860 trillion as of April 30, 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
May’s positive market return drove three more plans over the 90% funded mark as of May 31, 2026; now, 50 plans stand above this benchmark compared to 47 as of April 30, 2026. Meanwhile, at the lower end of the spectrum, 10 plans are less than 60% funded, down from 11 as of April 30, 2026.
Figure 5: Funded ratios at May 31, 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 May 31, 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.