Funded status of largest U.S. corporate pension plans ends 2023 at 100%

Equity gains helped to offset liability headwinds from falling interest rates, bringing pension plans to full funding for the first time since the 2008 financial crisis

ARLINGTON, Va., Jan. 02, 2024 (GLOBE NEWSWIRE) -- The funded status of the nation’s largest corporate defined benefit (DB) pension plans attained an important milestone in 2023 as investment returns outpaced pension liability movements created by falling interest rates, according to an analysis by WTW (NASDAQ: WTW), a leading global advisory, broking and solutions company.

WTW examined pension plan data for 358 Fortune 1000 companies that sponsor U.S. DB pension plans and have a December fiscal year-end date. The aggregate pension funded status of these plans at the end of 2023 is estimated to be 100%, two percentage points higher than 98% at the end of 2022. The analysis found the funding deficit has closed, improved from the $25 billion deficit at the end of 2022. Pension obligations declined slightly (3%) from $1.23 trillion at the end of 2022 to an estimated $1.19 trillion at the end of 2023.

Fortune 1000 aggregate pension plan funding levels

Year	2007		2008		2009		2010		2011		2012		2013		2014		2015		2016		2017		2018		2019		2020		2021		2022		2023
Aggregate level	107%		77%		81%		84%		78%		77%		89%		81%		81%		81%		85%		86%		87%		88%		95%		98%		100%*

*Estimated