Winter 2010 Report of Results from Segal’s Survey of Plans’ 2009 Zone Status

Abstract

The Segal Company's Survey of Plans' 2009 Zone Status reports the percentage of multiemployer pension plans that fell into each of the three zones - red ("critical status"), yellow ("endangered status") and green (neither critical nor endangered) - in 2009. The key survey findings follow:

  • The average Pension Protection Act of 2006 funded percentage for the surveyed plans was 82 percent in 2009.
  • 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.

This report presents details and commentary about these, and other, survey findings.

The survey data is based on Segal Company certifications through November for client plans representing a wide range of industries from across the country that, as a group, have plan years beginning January 1 to September 1. The certifications took into account any changes in plan design, employment, negotiated contribution rates and investment performance, generally through the end of the prior plan year.

Update: In spring 2010, Segal added a set of graphs to this Web site to supplement the survey report abstracted here. The graphs, which show the 2009 zone status for all of Segal's multiemployer pension plan clients, including those with plan years beginning October 1 to December 1, is available on the following page: http://www.segalco.com/publications/surveysandstudies/spring2010suppzonestatus2009.pdf

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