TThe funded status of the 100 largest corporate defined benefit pension plans improved by $8 billion during October, as measured by the Milliman 100 Pension Funding Index (PFI). A small decrease in the benchmark corporate bond interest rates used to value pension liabilities led to a modest increase in those liabilities; however, pension assets increased by a greater amount due to strong monthly investment returns. As of October 31, the PFI funded ratio rose to 107.1% from 106.5% at the end of September. This makes seven consecutive months of improvements to the pension funding ratio, pushing the Milliman 100 plans further into surplus territory.
During October, the market value of PFI plan assets increased by $10 billion to $1.328 trillion as of October 31, 2025. October’s robust 1.27% investment return drove this result. 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.
The Milliman 100 PFI projected benefit obligation increased during October, to $1.240 trillion. The change resulted from a decrease of 3 basis points in the monthly discount rate, to 5.33% for October from 5.36% in September.
Highlights
| $ BILLION | FUNDED PERCENTAGE | |||
|---|---|---|---|---|
| MV | PBO | FUNDED STATUS | ||
| September | 1,317 | 1,237 | 81 | 106.5% |
| October | 1,328 | 1,240 | 88 | 107.1% |
| Monthly change | +10 | +3 | +8 | 0.6% |
| YTD Change | +63 | +19 | +44 | 3.5% |
Note: Numbers may not add up precisely due to rounding
Over the last 12 months (September 2024 to October 2025), the cumulative asset return for these pensions has been 10.49% and the Milliman 100 PFI funded status position has improved by $60 billion. The funded status increase is primarily due to strong market returns. Discount rates experienced a small net increase of 2 basis points, to 5.33% from 5.31% one year ago. The funded ratio of the Milliman 100 companies has improved over the past 12 months, to 107.1% from 102.2%.
Figure 1: Milliman 100 Pension Funding Index — Pension surplus/deficit
Figure 2: Milliman 100 Pension Funding Index — Pension funded ratio
2025-2026 projections
If the Milliman 100 PFI companies were to achieve the expected 6.53% median asset return (as per the 2025 PFS), and if the current discount rate of 5.33% remains unchanged throughout 2025 and 2026, we forecast that the funded status of the surveyed plans would increase. The pension surplus is projected to be $92 billion (funded ratio of 107.4%) by the end of 2025 and $115 billion (funded ratio of 109.4%) by the end of 2026. For purposes of this forecast, we have assumed 2025 and 2026 aggregate annual contributions of $20 billion.
Under an optimistic forecast with rising interest rates (reaching 5.43% by the end of 2025 and 6.03% by the end of 2026) and annual asset returns of 10.53%, the funded ratio is projected to climb to 109% by the end of 2025 and 123% by the end of 2026. Under a pessimistic forecast with similar interest rate and asset movements (5.23% discount rate at the end of 2025 and 4.63% by the end of 2026 and 2.53% annual asset returns), the funded ratio is projected to decline to 106% by the end of 2025 and 97% by the end of 2026.
Milliman 100 Pension Funding Index - October 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.