Tag Archives: Bob Behar

Multiemployer pension funding levels experience slight uptick overall, but poor plans grow poorer

Milliman has released the results of its Spring 2017 Multiemployer Pension Funding Study, which analyzes the funded status of all multiemployer pension plans. As of December 31, 2016, these plans have an aggregate funding percentage of 77%, a 1% increase since June 2016. During that six-month period, the market value of assets increased by $17 billion while pension liabilities increased by $13 billion, resulting in a $4 billion decrease in the aggregate funding status shortfall.

But results vary by plan; while noncritical plans experienced an aggregate funding percentage of nearly 85%, the funding level for critical plans is under 60%. The gap continues to widen between critical and noncritical plans. While the funding percentage of healthier plans has increased slightly, critical plans have seen no appreciable increase. Persistent strong returns would be needed to see any appreciable improvement in funded status.

A closer look into how contributions are distributed shows that plans facing severe funding challenges only spend 38 cents of each contribution dollar on new benefit accruals, while 50 cents of every dollar goes to pay down funding shortfalls. Healthier plans spend 56 cents per contribution dollar on benefit accruals and 32 cents on funding shortfalls. The remaining 12 cents in both scenarios is spent on expenses.

This is the first of three pension funding studies Milliman will be releasing this week. To view the complete study, click here. To receive regular updates of Milliman’s pension funding analysis, contact us here.

Introducing the new multiemployer calendar

Milliman is pleased to announce the availability of our 2011 “Key Administrative Dates and Deadlines for Calendar-Year Multiemployer Defined Benefit Plans.” We are confident that you will find the calendar a useful planning tool throughout the year.

This calendar is a comprehensive but easy-to-use tool that plan administrators now have to stay ahead of the seemingly never-ending array of deadlines that confront sponsors of multiemployer plans. It covers the essential elements of the various tasks that need to be performed during the year and takes the guesswork out of knowing the exact requirements. If I were a plan administrator I would print it out, place it in a conspicuous location, and look at it at regular intervals.

You’ll find the calendar here.