By: Russ Kamp, CEO, Ryan ALM, Inc.
Once again, Milliman has released its monthly Milliman 100 Pension Funding Index (PFI), which analyzes the 100 largest U.S. corporate pension plans.
During November, the PFI funded ratio rose from 107.0% at the end of October to 107.1% as of November 30, 2025. According to Zorast Wadia, the PFI’s author, discount rates edged higher (by 1 basis-point) to 5.34% in November. This minimal increase was still good enough to reduce liabilities by $3 billion. This slight reduction in pension liabilities combined with minimal asset growth of 0.44% led to the improvement in the funded ratio for the PFI index. As of November 30, the PFI plan assets declined to $1.325 trillion while projected benefit obligations dropped to $1.237 trillion.
Despite modest market returns, “the corporate pension funding rally continued in November with an eighth straight month of gains,” said Zorast. “Although funded levels have not been this high since before the dot-com crisis, all eyes are on the end of December, when most corporate plans will reveal the discount rate and asset values in effect for year-end disclosures and next year’s pension expense.” We can’t wait to see what the next report brings!
It will be interesting to see what transpired for public pension plans during the month given the different accounting rules for FASB vs. GASB. The slight increase in the FASB discount rate which led to a decline in pension liabilities will not be reflected in the public fund analysis who use GASB discount rates based on the ROA. Will the collective return for the PPFI be similar to that experienced by corporate plans, and if so, will it be enough to lead to an improved funded ratio? Below is the link to the complete report.
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