Wellington Management
May 29, 2025
Tracing our history to 1928, Wellington Management is one of the largest independent investment management firms in the world. We serve as a trusted adviser for institutions in more than 60 countries.

How is funded status holding up in the volatility? Updates on the corporate DB landscape

We recently updated our analysis of the funded status, derisking activity, and ROA assumptions of US corporate defined benefit plans using 2024 fiscal year-end filings for companies in the Russell 3000 Index. Below we share our key observations on the data and on our outlook for plan contributions. In addition, we offer a few quick thoughts on next steps for derisking plans.

Funded ratios increased in 2024 but have lost ground so far in 2025 1

Plans ended 2024 with an aggregate funded ratio of about 100%, up three percentage points from year-end 2023, driven by strong equity returns and higher discount rates ( Figure 1 ). More than 40% of plans were in surplus as of year-end 2024, although that proportion is likely somewhat lower today.

As of April 25 of this year, we estimate funded ratios have fallen two percentage points in aggregate to 98%, giving back most of their 2024 gains. That said, funded ratios have been fluctuating quite meaningfully and may continue to do so amid the ongoing market volatility.

Continue reading

More from Wellington Management
The most important insight of the day
Get the Harvest Daily Digest newsletter.