Milliman analysis: Corporate pensions close 2025 at 108.1% funded thanks to 11.32% annual return

Milliman 100 PFI plans see $54 billion funded status improvement for the year

SEATTLE--(BUSINESS WIRE)--Milliman, Inc., a premier global consulting and actuarial firm, today released the 2025 year-end results of its Milliman 100 Pension Funding Index (PFI), which analyzes the 100 largest U.S. corporate pension plans.

The funded ratio of the Milliman 100 PFI plans improved for nine consecutive months in 2025, rising from 103.6% at the end of 2024 to 108.1% as of December 31, 2025. Cumulative annual investment gains of 11.32% drove this result and lifted plan assets by $53 billion for the year. Meanwhile, plan liabilities slipped $1 billion during the period as discount rates fell 13 basis points.

“Strong market returns during 2025 added $53 billion to the plans’ funded surplus, while declining liabilities contributed another $1 billion,” said Zorast Wadia, author of the Milliman 100 PFI. “Discount rates fell during the year, and this trend could extend into 2026, potentially reversing some of the recent funded status gains and underscoring the continued need for prudent asset-liability management.”

Looking forward, under an optimistic forecast with rising interest rates (reaching 6.06% by the end of 2026 and 6.66% by the end of 2027) and asset gains (10.53% annual returns), the funded ratio would climb to 122% by the end of 2026 and 137% by the end of 2027. Under a pessimistic forecast (4.86% discount rate at the end of 2026 and 4.26% by the end of 2027 and 2.53% annual returns), the funded ratio would decline to 99% by the end of 2026 and 90% by the end of 2027.

Read this month’s complete Pension Funding Index or Milliman’s full range of annual Pension Funding Studies. For regular updates of Milliman’s pension funding analysis, email [e-mail].

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