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

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 pensionfunding@milliman.com.

About Milliman

Milliman leverages deep expertise, actuarial rigor, and advanced technology to develop solutions for a world at risk. We help clients in the public and private sectors navigate urgent, complex challenges—from extreme weather and market volatility to financial insecurity and rising health costs—so they can meet their business, financial, and social objectives. Our solutions encompass insurance, financial services, healthcare, life sciences, and employee benefits. Founded in 1947, Milliman is an independent firm with offices in major cities around the globe. Visit us at milliman.com.

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The funded ratio of the Milliman 100 PFI plans began 2025 at 103.6% and rose for nine straight months over the course of the year.