S&P 1500 pension funded status increased by one percent in 2025, according to Mercer 

The estimated aggregate funding level of pension plans sponsored by S&P 1500 companies as of December 31, 2025, increased to 110 percent from 109 percent as of December 31, 2024. Over the course of 2025, there were double-digit gains in domestic equity markets and an approximately 13 basis point decrease in interest rates used to calculate corporate pension plan liabilities. The estimated aggregate surplus of $146 billion USD as of December 31, 2025, increased by $11 billion USD compared to a surplus of $135 billion USD measured at the end of 2024 according to Mercer,¹ a business of Marsh McLennan.

Mercer’s main findings for 2025 include:

• Funded status fluctuated throughout the year, falling as low as 99% in April before topping out at 110% to end the year.
• The surplus of $135 billion at 2024 year-end increased to $146 billion at 2025 year-end.

The S&P 500 index increased 16.39 percent and the MSCI EAFE index increased 27.89 percent in 2025. Typical discount rates for pension plans as measured by the Mercer Yield Curve decreased from 5.60 percent to 5.47 percent.

“Funded status was up one percent in December and also up one percent year over year,” said Matt McDaniel, a Partner in Mercer’s Wealth Practice. “As 2025 progressed, short-term rates decreased significantly, driven by Fed rate cuts. Longer-term interest rates were less affected, leading to a modest decrease in the effective interest rates used to calculate pension plan liabilities. Despite volatility around tariff uncertainties, domestic and international equities had a very strong year, reinforcing the importance of plan sponsors not reacting in the moment and staying the course, as most saw funded statuses bounce back.”

“During 2025, plan sponsors continued to offload significant pension plan risk, with another strong year for the pension risk transfer market. As the aggregate market pension funded status remains in a healthy surplus position, early indicators in 2026 are pointing to another strong year for pension risk transfer as many plan sponsors continue to be proactive in winding down their plans,” McDaniel added.  

Mercer 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 statement² and by projections to December 31, 2025, in line with financial indices. The estimates include U.S. 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 December 31, 2024, was $1.72 trillion USD, compared with estimated aggregate liabilities of $1.58 trillion USD. Allowing for changes in financial markets through December 31, 2025, changes to the S&P 1500 constituents, and newly released financial disclosures at the end of December, the estimated aggregate assets were $1.68 trillion USD, compared with the estimated aggregate liabilities of $1.53 trillion USD. Figure 2 shows the discount rates used in Mercer’s pension funding calculation.

Notes for editors

Information on the Mercer Yield Curve is available at Pension Discount Yield Curve and Index Rates in US.

The Mercer US Pension Buyout Index may be accessed at Mercer 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 Mercer Investments LLC.}

_{² Source of financial statement data: Standard & Poor’s Capital IQ. Standard and Poor’s is a division of The McGraw-Hill Companies, Inc. This may contain information obtained from third parties, including ratings from credit ratings agencies such as Standard & Poor’s. Reproduction and distribution of third-party content in any form is prohibited except with the prior written permission of the related third party. Third-party content providers do not guarantee the accuracy, completeness, timeliness or availability of any information, including ratings, and are not responsible for any errors or omissions (negligent or otherwise), regardless of the cause, or for the results obtained from the use of such content. THIRD-PARTY CONTENT PROVIDERS GIVE NO EXPRESS OR IMPLIED WARRANTIES, INCLUDING, BUT NOT LIMITED TO, ANY WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR USE. THIRD-PARTY CONTENT PROVIDERS shall not be liable for any direct, indirect, incidental, exemplary, compensatory, punitive, special or consequential damages, costs, expenses, legal fees, or losses (including lost income or profits and opportunity costs) in connection with any use of THEIR CONTENT, INCLUDING ratings. Credit ratings are statements of opinions and are not statements of fact or recommendations to purchase, hold, or sell securities. They do not address the suitability of securities or the suitability of securities for investment purposes, and should not be relied on as investment advice.}