Milliman PFI funded ratio rises to 109.6% thanks to 2.22% monthly return

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

The funded status of the Milliman 100 PFI plans improved by $18 billion during May, driven by investment returns of 2.22%. The funded ratio rose from 108.2% as of April 30 to 109.6% as of May 31—the highest mark since July 2001, when it stood at 109.9%. Plan liabilities also rose during the month, to $1.208 trillion, as the discount rate fell 4 basis points, to 5.62%. However, this was not enough to offset investment performance, as plan assets increased by $22 billion during the period, to $1.324 trillion, while the funded status surplus reached $116 billion.

“May’s robust returns pushed corporate pensions further into surplus territory, to a level not seen in nearly 25 years,” said Zorast Wadia, Milliman PFI author. “Plan sponsors that haven't yet pursued de-risking opportunities may want to review their options, as conditions remain highly favorable."

Looking ahead, under an optimistic scenario (discount rate reaching 5.97% by end of 2026 and 6.57% by end of 2027, and 10.61% annual returns), the funded ratio could reach 117% by end of 2026 and 131% by end of 2027. Under a pessimistic scenario (discount rate reaching 5.27% by end of 2026 and 4.67% by end of 2027, and 2.61% annual returns), the funded ratio could fall to 104% by end of 2026 and 94% 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 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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Combined, plan assets for the 100 largest corporate pensions increased by $22 billion during May, while the funded status surplus reached $116 billion.