The funded status of the country’s 100 largest corporate defined benefit pension plans increased by $2 billion during November, as measured by the Milliman 100 Pension Funding Index (PFI). A small increase in the benchmark corporate bond interest rates used to value pension liabilities led to a $3 billion drop in plan liabilities for the month. However, plan assets also declined due to underwhelming investment gains, partially offsetting the liability gain. As of November 30, the funded ratio inched upward to 107.1%, from 107.0% at the end of October, and the funded status surplus improved to $88 billion.
The market value of plan assets decreased by $1 billion during the period, to $1.325 trillion, due to November’s poor 0.44% investment return. By comparison, the 2025 Milliman Pension Funding Study reported that the monthly expected investment return for fiscal-year 2024 was 0.53% (6.53% annualized). The full results of the annual 2025 study can be found at www.milliman.com/pfs.
In November, the projected benefit obligation decreased to $1.237 trillion from $1.240 trillion at the end of October. This change resulted from an increase of 1 basis point (bp) in the monthly discount rate, to 5.34% for November from 5.33% in October.
Highlights
| $ BILLION | FUNDED PERCENTAGE | |||
|---|---|---|---|---|
| MV | PBO | FUNDED STATUS | ||
| October | 1,326 | 1,240 | 86 | 107.0% |
| November | 1,325 | 1,237 | 88 | 107.1% |
| Monthly change | (1) | (3) | +2 | 0.1% |
| YTD Change | +61 | +17 | +44 | 3.5% |
Note: Numbers may not add up precisely due to rounding
Over the last 12 months (December 2024 to November 2025), the cumulative asset return for the PFI plans was 8.44% and the Milliman 100 PFI funded status position improved by $53 billion. The funded status gain is primarily the result of robust investment performance over the past 12-month period. Discount rates experienced a small increase of 13 bps during the period, to 5.34% from 5.21% one year ago. The funded ratio of the Milliman 100 companies has increased over the past 12 months, to 107.1% from 102.8%.
We will continue to closely monitor the movement of the financial markets and the interest rate environment as year-end approaches.
Figure 1: Milliman 100 Pension Funding Index — Pension surplus/deficit
Figure 2: Milliman 100 Pension Funding Index — Pension funded ratio
2026-2027 projections
If the Milliman 100 PFI companies were to achieve the expected 6.53% asset return (as per the 2025 PFS), and if the current discount rate of 5.34% were maintained during the last month of 2025 through the end of 2027, we forecast that the funded status of the surveyed plans would increase. This would result in a projected pension surplus of $113 billion (funded ratio of 109.2%) by the end of 2026 and a projected pension surplus of $136 billion (funded ratio of 111.2%) by the end of 2027. For purposes of this forecast, we have assumed 2026 and 2027 aggregate annual contributions of $25 billion.
Under an optimistic forecast with rising interest rates (reaching 5.99% by the end of 2026 and 6.59% 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 with similar interest rate and asset movements (4.69% discount rate at the end of 2026 and 4.09% by the end of 2027 and 2.53% annual returns), the funded ratio would decline to 97% by the end of 2026 and 89% by the end of 2027.
Milliman 100 Pension Funding Index - November 2025 (all dollar amounts in millions)
Pension asset and liability returns
About the Milliman 100 monthly Pension Funding Index
For the past 25 years, Milliman has conducted an annual study of the 100 largest defined benefit pension plans sponsored by U.S. public companies. The Milliman 100 Pension Funding Index projects the funded status for pension plans included in our study, reflecting the impact of market returns and interest rate changes on pension funded status, utilizing the actual reported asset values, liabilities, and asset allocations of the companies’ pension plans.
The results of the Milliman 100 Pension Funding Index were based on the actual pension plan accounting information disclosed in the footnotes to the companies’ annual reports for the 2024 fiscal year and for previous fiscal years. This pension plan accounting disclosure information was summarized as part of the Milliman 2025 Pension Funding Study, which was published on April 30, 2025. In addition to providing the financial information on the funded status of U.S. qualified pension plans, the footnotes may also include figures for the companies’ nonqualified and foreign plans, both of which are often unfunded or subject to different funding standards than those for U.S. qualified pension plans. They do not represent the funded status of the companies’ U.S. qualified pension plans under ERISA.