Corporate Pension Monthly
Dog Days, Summer Gains
In August, our estimate of the aggregate corporate defined benefit (DB) funded status increased to 112.2%, up from 111.8% in July. Global equity markets reached record highs, supported by a robust earnings season and resilient economic activity. Meanwhile, interest rates declined modestly as strong demand for high-quality fixed income and easing inflation concerns supported bond prices, lowering pension discount rates and increasing the estimated value of liabilities. Nevertheless, strong asset performance, led primarily by the equity rally, more than offset the increase in liabilities, resulting in an improvement in our estimated funded status over the month.
Chart source: MSCI, Bloomberg, and Goldman Sachs Asset Management as of August 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 August 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 August 31, 2026. Past performance does not predict future returns and does not guarantee future results, which may vary.
Recent Matters of Note
The Pension Benefit Guaranty Corporation (PBGC) has recently launched a permanent coverage assessment program that allows employers that are considering establishing a new defined benefit pension plan to determine whether it would be covered under the agency’s Single-Employer Insurance Program. Reviving and expanding a pilot program that ended in 2022, the initiative enables prospective sponsors to request a coverage assessment letter in advance, helping clarify whether PBGC premiums and related requirements would apply.
The program is intended to address situations where PBGC coverage depends on a plan’s specific design and circumstances. While the agency generally insures private-sector defined benefit plans, certain plans may be exempt, including some small professional service employer plans, plans maintained exclusively for substantial owners, church plans, and certain Puerto Rico-based plans. By providing greater upfront clarity, the new process may help employers, particularly small businesses, make more informed decisions when evaluating whether and how to establish a pension plan.
Source: PBGC and news releases as of August 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.
