November 2025
25Nov

US. Milliman analysis: Public pension funding rises in October to highest level in study history

Milliman, Inc., a premier global consulting and actuarial firm, today released the latest results of its Public Pension Funding Index (PPFI), which analyzes data from the nation’s 100 largest public defined benefit plans. For the seventh straight month, the PPFI funded ratio improved in October, rising from 85.4% as of September 30 to 86.3% as of October 31, surpassing the previous high-water mark of 85.5% set at the end of 2021. Another month of strong investment returns—estimated at 1.0% in...

November 25, 2025
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21Nov

Global pension trends: What to expect in 2026

By Julien Halfon  Pension reforms are at an inflection point as UK and Dutch pension systems enter 2026 with high funding ratios, regulatory clarity, and the scope to re-risk in controlled ways. We expect much wider adoption of cash-flow driven investing strategies for defined benefit plans and some re-risking for the forthcoming Dutch Collective Defined Contribution system. The high equity tolerance of US defined contribution plans is broadening, while allocations to private markets, particularly private credit and infrastructure, continue to...

November 21, 2025
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04Nov

US Public Pension Market Bubble Exposure Remains High

Robust market valuations in recent years have supported funding progress for U.S. state and local defined benefit pension plans. However, public pensions remain underfunded and fundamentally exposed to market volatility. A market shock could increase the burden of state and local pension liabilities and drive contributions higher, says Fitch Ratings. Governments with weaker liability metrics and high carrying cost burdens could be most vulnerable to rating pressure. Post-global financial crisis, plan sponsors took various policy actions such as reducing benefits...

November 4, 2025
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October 2025
31Oct

Behavioral Biases of Financial Planners: The Case of Retirement Funding Recommendations

By Vishaal Baulkaran & Pawan Jain We examine whether financial planners display common behavioral biases and whether these biases affect their recommendations for various home equity release options to fund retirement income. First, we show that different factors explain different behavioral biases. Second, we show that different behavioral biases affect financial planners’ comfort level and recommendations for various options to fund extra income during retirement. For instance, female planners, planners with advanced degrees and those from non-bank institutions display less...

October 31, 2025
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30Oct

US. State Pension Funding Levels Stayed Stable Despite Volatility

The reported funding gap for state pension plans—the disparity between promised benefits and available assets—was $1.32 trillion in 2023, according to 50-state data collected by The Pew Charitable Trusts. This represents a $44.7 billion increase over 2022, driven primarily by increases to liabilities from benefit changes and differences between what plans assumed for salaries, longevity, and similar workforce and demographic trends and what actually happened. However, even amid volatile markets, state funds showed signs of resilience. The overall funded ratio—the...

October 30, 2025
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22Oct

US. Corporate Pension Funding Ratios Hit Highest Level Since 2007

The funded ratio for the largest 100 corporate defined benefit plans improved to 106.5% in September, the highest level since October 2007 (108.1%) and up from 106.3% in August, according to Milliman’s pension funding index. September’s market returns of 2.5% added $26 billion to the market value of plan assets and swelled the funding status surplus to $80 billion last month. Meanwhile, discount rates dropped 17 basis points to 5.36%, which raised plan liabilities by $22 billion. During the third...

October 22, 2025
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21Oct

US. Options for Overfunded Pension Plans

You’ve done a good job making sure that the pension plan is fully funded. So good, in fact, that you — and the plan — are overachievers and the plan is fully funded and then some. And THAT surplus spells…opportunity. The Grist Funding of pension plans generally has been on an upward trajectory for a number of years. The improvement in funded status has been dramatic, yet incremental. Willis Towers Watson’s figures show as much: they show that the funding of a hypothetical benchmark...

October 21, 2025
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14Oct

US government shut down and rising government borrowing costs, but still pension funding soars

The quarter end was abruptly followed by the US government going into shutdown following a lack of agreement on funding measures into the new US fiscal year, which started on 1 October. This follows a quarter where the cost of government borrowing and above-target inflation remain key challenges for major global economies. Paradoxically, this market dynamic is serving pension schemes very well... Quarter in brief US government shutdown following funding shortfall The Bank of England and the Federal Reserve cut borrowing costs despite...

October 14, 2025
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August 2025
22Aug

Economic and Distributional Effects of Demographic Shifts: Evaluating Pay-as-You-Go and Fully Funded Pension Schemes Based on the Greek Experience

By Zois Gerasimos Katsimigas & Christos Papatheodorou This paper examines economic and distributional consequences of demographic shifts by comparing pay-as-you-go (PAYG) and fully funded (FF) pension schemes in a macroeconomic framework, using Greece as a case study. Facing acute ageing and population decline, Greece provides a unique context to assess the performance of these schemes. We develop a post-Keynesian stock-flow consistent (SFC) model calibrated to the Greek economy to simulate the macroeconomic and distributional outcomes of both schemes under projected...

August 22, 2025
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20Aug

US. Multiemployer Pensions Reach Historic Full Funding Status

U.S. defined benefit multiemployer pensions have been fully funded for the first time in the history of Millman’s Multiemployer Pension Funding Study, the firm reported today. The funding level improved by three percentage points, up from 97% as of December 31, 2024, to 100% as of June 30, an all-time high since the inception of the study in 2007. Milliman’s data are based on standard actuarial assumptions and data in the latest Form 5500 filings from all U.S. multiemployer plans. The funding shortfall...

August 20, 2025
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