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<\/a><\/a>\nThe funded status of the Milliman 100 PFI plans fell by $2 billion during June, after 0.42% investment returns caused plan assets to slip to $1.323 trillion as of June 30. Plan liabilities also rose during the period, to $1.208 trillion, as the monthly discount rate fell 1 basis point to 5.61%. The funded ratio dipped to 109.5% as of June 30.<\/p>
\nDespite June\u2019s decline, overall second-quarter gains of 4.81% lifted PFI plan assets by $41 billion for the period, while liabilities rose by only $2 billion. June\u2019s funded ratio is ahead of the 106.1% seen at the start of 2026.<\/p>
\n\u201cSubpar investment performance combined with rising liabilities caused the PFI funded status surplus to fall during June,\u201d said Zorast Wadia, PFI author. \u201cDespite a strong second quarter, future market volatility and liability increases are not off the table, so plan sponsors would do well to guard against further surplus deterioration by implementing prudent pension risk management strategies.\u201d<\/p>
\nLooking ahead, under an optimistic scenario (discount rate reaching 5.91% by end of 2026 and 10.61% annual returns), the funded ratio could reach 116% by end of 2026 and 129% by end of 2027. Under a pessimistic scenario (5.31% discount rate and 2.61% annual returns), the funded ratio could fall to 105% by end of 2026 and 95% by end of 2027.<\/p>
\nRead this month\u2019s complete Pension Funding Index<\/a> or Milliman\u2019s full range of annual Pension Funding Studies<\/a>. For regular updates of Milliman\u2019s pension funding analysis, email pensionfunding@milliman.com<\/a>.<\/p> \nAbout Milliman<\/b><\/p> \nMilliman leverages deep expertise, actuarial rigor, and advanced technology to develop solutions for a world at risk. We help clients in the public and private sectors navigate urgent, complex challenges\u2014from extreme weather and market volatility to financial insecurity and rising health costs\u2014so they can meet their business, financial, and social objectives. Our solutions encompass insurance, financial services, healthcare, life sciences, and employee benefits. Founded in 1947, Milliman is an independent firm with offices in major cities around the globe. Visit us at milliman.com<\/a>.<\/p>