Corporate pension funding approaches full funding, reaching 98.1% in October


“We are seeing the funding gap on these pensions move closer and closer to zero as strong investment markets continue to drive improving funding,” said Zorast Wadia, author of the Milliman 100 PFI. “But with discount rates below 3.00% over the past 12 months, it’s a marathon, not a sprint to full funding.”

Ultimately, as part of an optimistic forecast with rising interest rates (reaching 2.82% at the end of 2021 and 3.42% at the end of 2022) and asset gains (10.2% annual returns), the capitalization ratio would climb to 101% at the end of 2021 and 117% at the end of 2022. In a pessimistic forecast with similar interest rates and asset movements (discount rate of 2.62% at the end of 2021 and 2 , 02% at the end of 2022 and annual returns of 2.2%), the capitalization ratio would fall to 97% at the end of 2021 and to 88% at the end of 2022.

To view the full pension capitalization index, go to To see the full range of Milliman’s annual pension funding studies, visit To receive regular updates on Milliman’s pension funding analysis, contact us at [email protected].

About Milliman
Milliman is one of the world’s largest providers of actuarial and related products and services. The firm has consulting practices in the areas of health, property and casualty insurance, life insurance and financial services, and employee benefits. Founded in 1947, Milliman is an independent firm with offices in major cities around the world. For more information, visit

SOURCE Milliman, Inc.

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