US. Pension surplus era reshapes strategy as corporate plans rethink risk and returns

US corporate pension plans are entering 2026 in a position of strength, but that progress is reshaping, not simplifying, decision-making. A new report from BlackRock finds average funded ratios for defined benefit plans have reached roughly 108%, up sharply from about 87% in 2018. With many plans now overfunded, sponsors are shifting focus from closing deficits to preserving gains and determining how best to deploy surplus assets. That shift is altering long-standing investment approaches, particularly around liability-driven investing. While LDI allocations expanded significantly...