S&P 1500 pension funded status decreased by two percent in October 

The estimated aggregate funding level of pension plans sponsored by S&P 1500 companies decreased by two percent in October 2026 to 111 percent as a result of a decrease in discount rates and a decrease in equity markets. As of October, 2026, the estimated aggregate surplus of $161 billion USD decreased by $20 billion USD compared to a surplus of $181 billion USD measured at the end of September, according to Marsh¹, a leading global professional services firm.

The S&P 500 index decreased 0.93 percent, and the MSCI EAFE index decreased 0.80 percent in October. Typical discount rates for pension plans, as measured by the Yield Curve², decreased from 6.42 percent to 6.11 percent.

"Pension funded status for the S&P 1500 fell 2 percent in October, driven by equity losses and a drop in pension discount rates,” said Matt McDaniel, a Marsh Investments and Retirement Partner in the US. “After a steady upward trend for most of 2026, we gave back some of those gains this month, as rates remained volatile.”

"As we approach year-end, sponsors are evaluating their balance sheet exposure and budgeting for next year's pension costs and should consider taking action now to lock in current funding levels to help avoid surprises,” Mr. McDaniel added.

Marsh estimates the aggregate funded status position of plans sponsored by S&P 1500 companies on a monthly basis. Figure 1 (below) shows the estimated aggregate surplus/(deficit) position and the funded status of all plans sponsored by companies in the S&P 1500. The estimates are based on each company’s latest available year-end statement³ and by projections to October 31, 2026, in line with financial indices. The estimates include US domestic qualified and non-qualified plans, along with all non-domestic plans. The estimated aggregate value of pension plan assets of the S&P 1500 companies as of September 30, 2026, was $1.59 trillion USD, compared with estimated aggregate liabilities of $1.41 trillion USD. Allowing for changes in financial markets through October 31, 2026, changes to the S&P 1500 constituents, and newly released financial disclosures at the end of October, the estimated aggregate assets were $1.58 trillion USD, compared with the estimated aggregate liabilities of $1.42 trillion USD. Figure 2 shows the discount rates used in Marsh’s pension funding calculation.

The US Pension Buyout Index may be accessed at US pension buyout index.

Unless otherwise stated, the calculations are based on the Financial Accounting Standard (FAS) funding position and include analysis of the S&P 1500 companies.

_{¹ Figures provided by Marsh Investments LLC.}

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_{² Information on the Yield Curve is available at Pension Discount Yield Curve and Index Rates in US.}

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