Milliman analysis: Corporate pension funded ratio inches up to 112.2% in August

Above-expected investment gains for Milliman PFI plans offset increase in liabilities

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

The funded status of the Milliman PFI plans grew by $3 billion during August, thanks to market returns that outweighed a small discount rate decrease.

Milliman 100 plan asset values increased by $5 billion for the month, thanks to August’s 0.92% investment return, which was above expectations. Asset values rose from $1.294 trillion as of July 31, 2026, to $1.299 trillion as of August 31 for the PFI plans.

This increase was partially offset by a $2 billion increase in pension liabilities, resulting from a 2-basis-point decrease in the monthly discount rate, from 6.02% in July to 6.00% for August. The Milliman 100 projected benefit obligation was $1.158 trillion as of August 31.

“Despite the slight uptick in liabilities, August’s funded ratio was 112.2%, which continues to be a 25-year high for these plans,” said Zorast Wadia, author of the Milliman PFI. “Well-funded corporate sponsors should be examining ALM strategies and cash balance plan options.”

Looking ahead, under an optimistic scenario (discount rate reaching 6.20% by end of 2026 and 6.80% by 2027 year-end, with 10.61% annual returns), the funded ratio could reach 116% by end of 2026 and 129% by end of 2027. Under a pessimistic scenario (5.80% and 5.20% discount rates and 2.61% annual returns), the funded ratio could fall to 108% by end of 2026 and 99% by 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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