The funded status of the 100 largest U.S. defined benefit pension plans is projected to have reached 84.7 per cent as of Nov. 30, 2025, according to a new report by Milliman Inc.
It noted the last time these plans reached similar heights was in December 2021, when the funded ratio reached 85.5 per cent, a high-water mark in the nearly 14-year history of the report.
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The report also found aggregate assets reached US$5.05 trillion and total pension liability was $6.50 trillion, representing an underfunding of $1.45 trillion. This gap has narrowed compared to the prior study and is projected to have narrowed even further to $1.04 trillion at Nov. 30, 2025.
“Investment income has been a significant driver of funding improvement, with asset gains since plan measurement dates outpacing reported liability growth,” said Ryan Falls, principal at Milliman and the report’s co-author, in a press release. “But it’s important to note that the distribution of plan benefits and expenses continue to exceed contributions from employers and members, underscoring the importance of fiscal management and market performance.”
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