U.S. corporate pension funded status increased in July 2026 as rising discount rates reduced pension liabilities and improved overall funding levels. While pension investments faced headwinds from bond losses amid higher rates and wider credit spreads, gains in equities and alternative investments helped support performance.

Key takeaways:

• Funded status improved in July, reaching its highest level of 2026.
• Higher discount rates reduced liabilities, driving the increase in pension funding levels.
• Bond losses weighed on investment returns but gains in alternatives and equities helped offset the impact.