Average funding ratio is estimated to be roughly unchanged at 110%
L&G’s Pension Solutions Monitor, which estimates the health of a typical US corporate defined benefit pension plan, shows that pension funding ratios remained stable throughout June 2026. Based on market movements, the average funding ratio is estimated to be roughly unchanged at 110%.1
Equity markets experienced negative performance over the month with global equities decreasing 0.8%2 and the S&P 500 down 1.0%.3 Plan discount rates4 were estimated to have increased 6 basis points over the month driven by the Treasury component rising 3 basis points and the credit component widening 3 basis points. Plan assets with a traditional “40/60” asset allocation increased 0.1% while liabilities increased 0.3%, resulting in relatively stable funding levels by June month-end.
The Pension Solutions Monitor assumes a typical liability profile using an approximate duration of 10 years and an asset allocation of 40% MSCI AC World Total Gross Index / 60% Bloomberg US Long Government/Credit Index. Our analysis incorporates data from L&G research, ICE indices and Bloomberg.
Pension Funded Status Market Summary:
- Equity markets delivered negative performance with Global Equities and the S&P 500 down over the month.
- Plan liabilities were relatively unchanged due to stable discount rates.
- Funding levels were relatively unchanged due to muted market movements.
| Funded status risk | June 2026 |
|---|
| Equities |  |
| Interest rates |  |
| Credit spreads | |
Sources: L&G, ICE indices and Bloomberg. Data as of June 30, 2026.
Sources: L&G, ICE indices and Bloomberg. Data as of June 30, 2026.
Values shown are based on proprietary modeling and assumptions developed by L&G – Asset Management, America.
“Global equities” referred to here is represented by the MSCI AC World Total Gross Index.
S&P Dow Jones Indices LLC. S&P 500 Index. Data as of June 30, 2026.
Discount rates based on a blend of the Intercontinental Exchange Mature US Pension Plan AAA-A and Intercontinental Exchange Retired US Pension Plan AAA-A discount curves.
For educational purposes only.
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