Corporate Pensions End Q2 at 109.5% Funded Despite June Dip
Event summary
- Milliman's Milliman 100 Pension Funding Index (PFI) shows a 109.5% funded ratio as of June 30, 2026.
- June saw a $2 billion decline in funded status due to 0.42% investment returns and rising liabilities.
- Q2 gains lifted PFI plan assets by $41 billion, with liabilities increasing by only $2 billion.
- Funded ratio is ahead of the 106.1% seen at the start of 2026.
The big picture
Milliman's analysis highlights the resilience of corporate pensions despite June's dip, reflecting broader market dynamics and investment performance trends. The strong Q2 gains underscore the importance of strategic asset allocation and liability management in maintaining funded status. Plan sponsors must navigate potential volatility to safeguard pension surpluses.
What we're watching
- Market Volatility
- Future market volatility and liability increases could impact pension funded status.
- Investment Returns
- Whether plan sponsors can sustain strong investment returns to maintain surplus levels.
- Pension Risk Management
- The pace at which plan sponsors implement prudent pension risk management strategies.