Segal’s Survey of Calendar-Year Plans’ 2014 Zone Status: More Plans in Green Zone

New York (4/14/14) —  The key finding from Segal Consulting’s Survey of Calendar-Year Plans’ 2014 Zone Status is that the percentage of multiemployer pension plans in the “green zone” has increased since last year.

The report shows that 65 percent of calendar-year plans (those with plan years that start on January 1) are in the green zone, up from 61 percent in 2013. Additional positive news is that the percentage of plans in the yellow and red zones are down from last year, with those in the yellow zone at 8 percent (compared to 11 percent last year) while those in the red zone declined to 27 percent (compared to 28 percent the prior year).

According to Segal Rogerscasey (the SEC-registered investment solutions member of The Segal Group), for 2013, the return for Taft-Hartley pension funds with a 40 to 70 percent allocation to equities ranged from 11.5 to 21.4 percent, significantly exceeding multiemployer plans’ investment return assumptions for the year.

“This survey reveals an improvement in the percentage of multiemployer pension plans in the green zone,” said David Blumenstein, Segal SVP and national director of multiemployer consulting. “We anticipate improved funding percentages in 2014 and beyond as we phase in the positive investment returns for 2013.”

The survey, which reflects data from more than 215 calendar-year plans, also revealed that for the fifth consecutive year, over half the surveyed plans are in the green zone. Further, both the construction and service industries have the greatest percentage of plans in the green zone, both at 73 percent.

An infographic of key findings from the Survey of 2014 Calendar-Year Plans’ 2014 Zone Status is available here.

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The Segal Group (www.segalgroup.net) is a private, employee-owned consulting firm headquartered in New York and with nearly 1,000 employees throughout the U.S. and Canada. Members of The Segal Group include: Segal Consulting, Sibson Consulting, Segal Select Insurance Services, Inc., and Segal Rogerscasey. In 2014, The Segal Group is celebrating the 75th anniversary of its founding by Martin E. Segal.

Segal Consulting (www.segalco.com), a member of The Segal Group, is a leading, independent firm of benefits, compensation and human resources consultants. In 2014, The Segal Group is celebrating the 75th anniversary of its founding by Martin E. Segal. Segal is headquartered in New York and has nearly 1,000 employees throughout the U.S. and in Canada. Clients include state and local governments, corporations, non-profit organizations, professional service firms and joint boards of trustees administering pension and health and welfare plans under the Taft-Hartley Act.

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