Defined benefit (DB) plan sponsors are in one of their strongest funding positions in decades, and a record 95% of those with de-risking goals, up from 76% in 2019, ultimately intend to completely divest their pension liabilities. According to MetLife’s 2026 Pension Risk Transfer (PRT) Poll, released today, PRT remains the key solution, with 88% of these sponsors considering a PRT solution with an insurer. The poll found an average funded ratio of 96%, with 36% of plans overfunded and 102% among plans with $3 billion or more in assets.

That financial strength is translating into resolve rather than complacency. More than half of sponsors (55%) expect to completely divest within two to five years, and another quarter (25%) within two years.

“The question is no longer whether sponsors will de-risk, but how and when,” said Elizabeth Walsh, vice president and head of U.S. Pensions at MetLife. “They’ve built the funding strength, governance and internal alignment to act.”

That intent is showing up in timelines. Among those open to PRT, 32% expect to complete a transaction within two years and another 56% within two to five years, signaling continued momentum in the market. Only 3% report plans delayed or on hold.

92% Have an Established Playbook, With the C-Suite at the Table

Pension strategy has the attention of senior leadership: 96% of sponsors report significant attention from senior management, and 78% say their organizations are already discussing PRT with members of the C-suite. Ninety-two percent have formal or informal trigger frameworks to determine when to initiate a transaction, typically based on risk-reduction objectives, annuity pricing within approximately 5% of projected benefit obligation (PBO) liabilities and/or a funded-status milestone.

Retiree Lift-Outs Are the Expected Path for the Largest Plans

Annuity buyouts remain the dominant strategy, with more than three-quarters of sponsors (76%) expecting to use one, alone or with a lump sum. Among those planning a buyout, 67% expect to execute a retiree lift-out, rising to 82% among those with $3 billion or more in DB plan assets.

Funding Strength and Interest Rates Shape Timing

Interest rates are the top catalyst for a PRT transaction (50%, up from 41% in 2025), and 62% say current rates are providing favorable annuity buyout pricing. Strong funding is also creating choices, including 53% that would adjust investment strategies to preserve surplus assets and reduce risk and 40% that would allocate their surplus to support a pension risk transfer.

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