1 06, 2018

Current Survey Shows a Majority of Multiemployer Pension Plans Are “Green”

2018-06-01T16:28:13-07:00June 1st, 2018|Categories: Multiemployer Plans|Tags: |

Segal Consulting’s latest Survey of Plans’ Zone Status presents the most recent data available for multiemployer pension clients that have January 1 through July 1 plan years and filed zone certifications by September 20, 2017. We found: Most calendar-year multiemployer plans are in the green zone. Relatively few plans are in critical and declining status. Roughly two-thirds of plans in the survey have a Pension Protection Act of 2006 (PPA’06) funded percentage above 80 percent. Nearly 30 percent of plans in [...]

22 05, 2018

Multiemployer Pension Funding a Big Challenge for PBGC, Wider Economy

2018-05-22T17:05:03-07:00May 22nd, 2018|Categories: Multiemployer Plans|Tags: |

A new report published by the Society of Actuaries (SOA) throws into sharp detail the challenges faced by the U.S. multiemployer pension system. Speaking about the report, Lisa Schilling, retirement research actuary for the SOA, quickly pointed out that there are many multiemployer pensions that are healthy and more or less entirely financially fit. In fact, there are more than 1,200 multiemployer pension plans in the United States today, covering about 10 million participants, including roughly 4 million retirees. However, [...]

26 04, 2018

Hearing Witnesses Lay Out How Multiemployer Pensions Got Where They Are

2018-04-26T09:50:51-07:00April 26th, 2018|Categories: Multiemployer Plans|Tags: , |

Witnesses for the newly formed Joint Select Committee on Solvency of Multiemployer Pension Plans spelled out for legislators the history of multiemployer pensions and how they got into the crisis they are in today. In his testimony, Thomas A. Barthold, chief of staff of the Joint Committee on Taxation, offered a very detailed history of the multiemployer pension plan system both before and after enactment of the Employee Retirement Income Security Act (ERISA). He identified four issues contributing to [...]

23 10, 2017

Multiemployer pension plans nearing healthiest funding since market collapse of 2008

2017-10-23T18:50:28-07:00October 23rd, 2017|Categories: Multiemployer Plans|Tags: |

Milliman has released the results of its Fall 2017 Multiemployer Pension Funding Study, which analyzes the funded status of all multiemployer pension plans. As of June 30, 2017, these plans are nearing the healthiest they’ve been since U.S. financial markets collapsed in 2008. In the first six months of 2017, the aggregate funding percentage for all multiemployer pensions climbed from 77% to 81%, reducing the system’s shortfall by $21 billion – an improvement driven largely by favorable investment returns. [...]

2 09, 2016

What Happens to Multiemployer Pension Plan Reform Now?

2016-09-02T21:57:26-07:00September 2nd, 2016|Categories: Multiemployer Plans|Tags: |

Congress passed the Multiemployer Pension Plan Reform Act of 2014 (MPRA) in an effort to aid the many failing multiemployer pension plans. At the time of its passage, the MPRA was regarded as the most significant legislation in decades. Importantly, the MPRA permits trustees to reduce the pension benefits of plan participants, including benefits for some retirees who are already in pay-status, if the fund is projected to become insolvent within a specified number of years. However, the MPRA [...]

4 08, 2016

Multiemployer Plans Are Predominantly in Green Zone

2016-08-04T22:26:06-07:00August 4th, 2016|Categories: Multiemployer Plans|Tags: , |

A strong majority of U.S. multiemployer retirement plans stand in the Pension Protection Act-defined “green zone,” according to Segal Consulting’s new survey of Plans’ Zone Status, meaning their financial outlook is healthy and they stand a good chance of paying out all benefits promised to participants and beneficiaries. According to Segal Consulting, of the calendar-year plans in the survey, or those with plan years that begin on January 1, two-thirds (66%) are in the green zone. The zone system [...]

3 03, 2016

What Congress can do to help people in multiemployer pension plans

2016-03-03T18:50:55-07:00March 3rd, 2016|Categories: Multiemployer Plans|Tags: |

Mr. Chairman, Senator Wyden, and members of the Committee, I am honored and grateful for the opportunity to speak about the sad choices facing some distressed multiemployer pension plans, and about the steps that Congress might take in response, some of which could make life better for the 1,000,000+ people in those plans, and some of which could make it worse.  […]

3 12, 2015

Multiemployer defined benefit pension plans show continued recovery

2015-12-03T01:29:58-07:00December 3rd, 2015|Categories: Multiemployer Plans|Tags: , |

A 10-year look at multiemployer pension plans shows most of them remaining financially stable, with increased funding levels and assets, said a report released Tuesday by the International Foundation of Employee Benefit Plans and Horizon Actuarial Services. Still, demographic challenges remain, the report found. The report looks at demographics, cash flows and investments for the defined benefit and defined contribution plans from 2004 through 2013. […]

24 11, 2015

Groundbreaking Construction Trades Mortality Study offers important guidance for pension plans

2015-11-24T00:32:16-07:00November 24th, 2015|Categories: Multiemployer Plans|Tags: , , |

Eckler Ltd., a leading Canadian-owned consulting and actuarial firm, has released the first in-depth analysis of Canadian pensioner mortality in construction trades' multi-employer pension plans (MEPPs). Findings from the groundbreaking Construction Trades Mortality Study can help administrators of these plans improve the mortality assumptions used in their valuations and calculate their liabilities and costs more accurately. "Life expectancy has a big impact on pension costs," says Cameron Hunter, Principal and leader of the Trusteed Plans Group at Eckler. "Canadians are living longer than previously estimated, and [...]

19 08, 2015

Weakest multiemployer pension plans continue to deteriorate

2015-08-19T17:03:32-07:00August 19th, 2015|Categories: Multiemployer Plans|Tags: , |

Financially stable multiemployer pension funds became more stable between 2009 and 2013, while financially distressed plans got slightly worse, said new research released Thursday by the Society of Actuaries. The research report, “Multiemployer Plan Stress Metrics,” is based on two key metrics that measure a plan’s burden on active plan participants and total annualized plan costs. The research is based on records from the Department of Labor’s Form 5500 database as of June 18, 2015. There were 1,307 plans [...]

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