With Funded Ratios Averaging 96%, Pension Risk Transfer Remains the Key Solution and Only 3% of Sponsors Report Plans Delayed or On Hold

Company Website: https://metlife.com
NEW YORK -- (Business Wire)

Defined benefit (DB) plan sponsors are in one of their strongest funding positions in decades, and a record 95% of those with de-risking goals, up from 76% in 2019, ultimately intend to completely divest their pension liabilities. According to MetLife's 2026 Pension Risk Transfer (PRT) Poll, released today, PRT remains the key solution, with 88% of these sponsors considering a PRT solution with an insurer. The poll found an average funded ratio of 96%, with 36% of plans overfunded and 102% among plans with $3 billion or more in assets.

That financial strength is translating into resolve rather than complacency. More than half of sponsors (55%) expect to completely divest within two to five years, and another quarter (25%) within two years.

"The question is no longer whether sponsors will de-risk, but how and when," said Elizabeth Walsh, vice president and head of U.S. Pensions at MetLife. "They've built the funding strength, governance and internal alignment to act."

That intent is showing up in timelines. Among those open to PRT, 32% expect to complete a transaction within two years and another 56% within two to five years, signaling continued momentum in the market. Only 3% report plans delayed or on hold.

92% Have an Established Playbook, With the C-Suite at the Table

Pension strategy has the attention of senior leadership: 96% of sponsors report significant attention from senior management, and 78% say their organizations are already discussing PRT with members of the C-suite. Ninety-two percent have formal or informal trigger frameworks to determine when to initiate a transaction, typically based on risk-reduction objectives, annuity pricing within approximately 5% of projected benefit obligation (PBO) liabilities and/or a funded-status milestone.

Retiree Lift-Outs Are the Expected Path for the Largest Plans

Annuity buyouts remain the dominant strategy, with more than three-quarters of sponsors (76%) expecting to use one, alone or with a lump sum. Among those planning a buyout, 67% expect to execute a retiree lift-out, rising to 82% among those with $3 billion or more in DB plan assets.

Funding Strength and Interest Rates Shape Timing

Interest rates are the top catalyst for a PRT transaction (50%, up from 41% in 2025), and 62% say current rates are providing favorable annuity buyout pricing. Strong funding is also creating choices, including 53% that would adjust investment strategies to preserve surplus assets and reduce risk and 40% that would allocate their surplus to support a pension risk transfer.

Interest in Buy-Ins Continues to Grow

At the same time, buy-ins are emerging as a distinct and increasingly strategic solution, particularly among the largest plans. Buy-ins allow sponsors to secure pricing certainty today while preserving the flexibility to complete a plan termination when the conditions are right. While buy-ins currently account for a modest share of sponsors' overall strategy, 17% of jumbo plans with $3 billion or more in assets say they intend to use one.

Technology and Governance Are Becoming Part of the Playbook

Nearly all sponsors (97%) are using or evaluating artificial intelligence (AI) for pension-related activities, most notably for pension data analysis, evaluating de-risking strategies and improving participant data quality. Thirty-nine percent have already handed day-to-day investment management to an Outsourced Chief Investment Officer (OCIO), and another 53% plan to within five years; 58% say OCIO use would make them more likely to pursue PRT or plan termination.

Insurer Financial Strength and Administration Matter More

Financial strength of the insurer is the top consideration for an annuity buyout, cited by 65% of plan sponsors, up from 33% as reported in the company's 2025 Pension Risk Transfer Poll. Cybersecurity is also becoming increasingly important, cited by 34%, up from 15% in 2025. When selecting an insurer, 71% prefer one with in-house administrative capabilities rather than one that outsources administration to another entity.

About the Poll

The 2026 Pension Risk Transfer Poll, which MetLife has conducted since 2015, was fielded July 13-22, 2026 by MMR Research Associates, Inc. among 250 DB plan sponsors with at least $100 million in plan assets and pension de-risking goals. Respondents averaged nearly $1.2 billion in DB plan assets and a 96% funded status. The full report is available at www.metlife.com/2026prtpoll.

About MetLife

MetLife, Inc. (NYSE: MET), through its subsidiaries and affiliates (“MetLife”), is one of the world’s leading financial services companies, providing insurance, annuities, employee benefits and asset management to help individual and institutional customers build a more confident future. Founded in 1868, MetLife has operations in more than 40 markets globally and holds leading positions in the United States, Asia, Latin America, Europe and the Middle East.

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Contacts:

For Media:
Judi Mahaney
646-238-4655
jmahaney@metlife.com

Source: MetLife, Inc.