Multiemployer Pension Plans' Financial Status
January 28, 2010
The Segal Company recently surveyed the financial status of 360 client multiemployer pension plans in a wide range of industries across the country. The survey focused on the percentage of plans that fell into each of the three zones – green, yellow, red – in 2009.
Among the key findings:
- The average Pension Protection Act of 2006 funded percentage for the surveyed plans was 82 percent in 2009, down from 93 percent in 2008.
- Only 38 percent of plans were in the green zone (based on their pre-freeze zone status), down from 80 percent in 2008.
- In 2009, roughly similar percentages of plans were in each of the three zones, a significant change from the prior year.
- Almost three-quarters of the plans allowed to take advantage of a one-time opportunity to freeze their zone status decided to do so.
"The significant change in zone status from 2008 to 2009 is directly related to the investment meltdown that occurred in 2008 and carried over into the first quarter of 2009," says Phil Romello, senior vice president and multiemployer retirement practice leader.
Read the Winter 2010 Report of Results from Segal's Survey of Plans' 2009 Zone Status