Additionally, those who are interested in attending our 19^th Annual IT Summit, which will be held on October 21–22, 2025 in Nashville, TN, are reminded that the deadline to register is September 30.

Key statistics

A focus on plans’ burn rates

A plan’s burn rate is a metric used to quantify the relationship between benefits and expenses paid compared to contributions and overall assets.

A plan’s burn rate is an important measure of its maturity. More mature plans with higher burn rates are more vulnerable to market downturns and should be monitored.

As illustrated and expected, plans in critical & declining (C&D) status have the highest median burn rate: 12 percent of their assets.

The Median Burn Rate Is Much Higher for C&D Plans

Source: Segal’s 2025 Survey of Plans’ Zone Status

It’s important for trustees to monitor their plan’s burn rate because for a plan’s assets to grow, the annual investment return must exceed the burn rate. Plans with lower burn rates are usually better equipped to weather market downturns. Trustees of plans with higher burn rates may consider de-risking strategies to mitigate the impact of volatile investment returns.

Investment trends

2025 financial markets mid-year update

The U.S. tariff backdrop has been an underlying driver of much of the uncertainty in global economic results during the first six months of 2025. Despite the uncertainty, the U.S. economy grew 3 percent in the second quarter.

On a return perspective, even after a 20 percent decline in early April, the markets closed the first half of the year on a positive note. Non-U.S. equity performed better than U.S. equity. Value stocks initially outperformed growth stocks but the trend reversed by the end of June. Large-cap stocks continued to dominate over mid- and small-cap stocks. Finally, fixed income performed relatively well in the first half of the year. For a more detailed discussion, see Segal Marco Advisors’ August 11 article.

Tariffs and inflation

The first half of the year has seen some increase in inflation rates across the globe, although the increases in the U.S. Consumer Price Index (CPI) have been driven largely by shelter costs (rent and home prices). Increased energy prices have also played a role due to the uncertainty created by the conflicts in the Middle East.

The CPI for June showed a rise in prices on imported goods. These increases included furniture, appliances, coffee and apparel. In addition, June’s metrics showed slower job growth, reductions in business investment and lower consumer confidence. These metrics are at least partly due to higher tariffs. For more second quarter 2025 market commentary see the Segal Marco Advisors’ August 11 article on Second Quarter Performance.

Selected strategies for managing multiemployer retirement plans

Received SFA? Now what?

As of September 5, 2025, a total of 137 plans covering 1.6 million participants and beneficiaries have received over $73 billion in Special Financial Assistance (SFA) under the American Rescue Plan Act. The infusion of SFA capital creates immediate short-term breathing room for trustees of SFA plans. Trustees of SFA-recipient plans need to consider changes in how they operate with the goal of strategically using the SFA funds to extend the life of the plans. Examples are plan mergers, small pension cash-outs, rehabilitation plan updates, investment strategies, potential benefit changes and attracting new contributing employers. For details, see our August 27 article on trustee considerations after their plan receives SFA. Contact your Segal consultant to discuss any of these issues.

Compliance reminders

The “Investment Trends” section of Currents was prepared using investment information from public and private sources that Segal Marco Advisors believes to be reliable. No representation or warranty stated or implied is given as to the accuracy of the information contained herein. The publication is distributed for general informational and educational purposes only and is not intended to constitute legal, tax, accounting or investment advice. Any ideas or strategies discussed herein should not be undertaken by any individual without prior consultation with your own financial, legal or other advisor for the purpose of assessing whether the ideas or strategies are suitable to you. The information contained herein, is not and shall not constitute an offer to sell, a solicitation of an offer to buy or an offer to purchase any securities, nor should it be deemed to be an offer, or a solicitation of an offer, to purchase or sell any investment product or service. Segal and Segal Marco Advisors expressly disclaim any liability or loss incurred by any person who acts on the information, ideas or strategies discussed herein.

Contact Segal Marco Advisors for advice regarding the evaluation of any “Investment Trends” content. Segal Marco Advisors posts new content regularly to the Investment Insights page.