Winter 2012 Report of Results from the Survey of Plans’ 2011 Zone Status

Abstract

The Segal Company's Survey of Plans' 2011 Zone Status reports the percentage of multiemployer pension plans that fell into each of the three "zones" under the Pension Plan Act of 2006 (PPA'06): red ("critical" status), yellow ("endangered" status) and green (neither endangered nor critical).

The key survey findings follow:

  • There was a significant increase in green-zone plans: 63 percent in 2011, up from 53 percent in 2010.
  • The average Pension Protection Act of 2006 (PPA'06) funded percentage for the surveyed plans was 87 percent in 2011, up from 83 percent in 2010.
  • Trustees of more than half of the surveyed plans elected to take advantage of some aspect of pension funding relief under the Preservation of Access to Care for Medicare Beneficiaries and Pension Relief Act of 2010. One-quarter of those plans experienced a change in zone status to green.

The report of results from the Survey of Plans' 2011 Zone Status, which covers certifications through November for more than 370 client plans representing a wide range of industries that, as a group, have plan years beginning January 1 to September 1, provides details about these and other findings, including the correlation between the PPA'06 funded percentage and zone status. In addition, the report provides information about practical steps trustees are already taking, or may wish to consider taking, to improve their plans' future zone and overall funding status.

Update: In spring 2012, Segal added a set of graphs to this website to supplement the survey report abstracted here. The graphs, which show the 2011 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 web page: View the graphs.

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