Corporate Pension Monthly
July Jitters
In July, our estimate of the aggregate corporate defined benefit (DB) funded status was 111.8%, higher than our estimate of 110.0% in June. Despite the Federal Reserve holding rates steady at its July meeting, longer-term interest rates moved higher during the month. At the same time, a technology-driven equity sell-off weighed on asset returns. The increase in our estimated discount rate reduced pension liabilities by a greater amount than the decline in assets. Consequently, our estimated funded status improved month over month.
Chart source: MSCI, Bloomberg, and Goldman Sachs Asset Management as of July 2026. Generally Accepted Accounting Principles (GAAP) funded status based on US plans (when specified) of S&P 500 companies (i.e., 229 companies with pension data per GS Asset Management research). Past performance does not predict future returns and does not guarantee future results, which may vary. The funded status figures are estimated and unaudited as of July 31, 2026, and subject to potentially significant revisions over time. Actual returns may vary significantly. The economic and market forecasts presented herein have been generated by Goldman Sachs Asset Management for informational purposes as of the date of this presentation. They are based on proprietary models and there can be no assurance that the forecasts will be achieved. Please see additional disclosures at the end of this presentation.
Source: MSCI, Bloomberg, and Goldman Sachs Asset Management. As of July 31, 2026. Past performance does not predict future returns and does not guarantee future results, which may vary.
Recent Matters of Note
On July 21, the US Department of Labor (DOL) filed an amicus brief in Doherty v. Bristol-Myers Squibb addressing pension risk transfers (PRTs). The DOL stated that ERISA permits employers to manage defined benefit pension obligations by transferring liabilities to annuity providers and reiterated its views on the process for selecting annuity providers. The filing is the DOL’s second amicus brief addressing PRT litigation this year.
In the brief, the DOL argued that participants lack standing because they have received all the benefits to which they are entitled and there is no evidence that those benefits are at risk.
The filing also reflects the DOL’s concern that continued litigation could deter employers from derisking their plans and upset the balance Congress established between federal and state regulatory authority in this area.
For more insights specific to corporate pension plans, we recently explored how tail-risk hedging strategies may help manage severe equity drawdowns, reduce funded-status volatility, and preserve flexibility to pursue long-term return objectives. Our team is ready to explore these topics with you.
Source: Company 10-K filings and news releases as of July 2026. Any reference to a specific company or security does not constitute a recommendation to buy, sell, hold or directly invest in the company or its securities. For illustrative purposes only. Please see additional disclosures at the end of this document. There is no guarantee that objectives will be met.
1 Asset return: Average asset-weighted return of S&P 500 companies’ US plans (when specified). US Equity uses S&P 500 Index.
2 Mix of MSCI EAFE and MSCI ACWI ex-US.
3 Mix of Corporates (Bloomberg US Aggregate Bond), High Yield (Bloomberg US High Yield), Treasuries (Bloomberg 20+ Year Treasuries), and Long Credit (Bloomberg Long US Credit).
4 Discount rate proxy measured by 50% Moody’s AA Corporate Bond and 50% US Long Duration Corporate Bond.
5 Estimated Change in Plan Liabilities based on increase in estimated discount rate and duration of 12. For 2025, uses average change in discount rate change for December year-end filers.
