Milliman analysis: Funded percentage of multiemployer pension plans rebounds to 82% in first half of 2019

Investment returns through June 30, 2019 resulted in near-record post-2008 funding levels

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Oct 17, 2019, 10:30 ET

SEATTLE, Oct. 17, 2019 /PRNewswire/ -- Milliman, Inc., a premier global consulting and actuarial firm, today released the results of its Fall 2019 Multiemployer Pension Funding Study (MPFS), which analyzes the funded status of all multiemployer pension plans in the United States. Between January 1, 2019 and June 30, 2019, the aggregate funded ratio of multiemployer plans rose from 74% to 82% thanks to stellar asset gains for many of these plans. In fact, the estimated investment return for the MPFS was about 13.4% for the first six months of 2019, nearly double many plans' annual investment return assumptions.

Over the first six months of 2019, the number of multiemployer plans that are 90% funded or better, climbed from 383 to 635 – a 66% increase. However for troubled plans, such as those in critical or critical and declining status, the rebound in funded status is not as pronounced despite the positive investment returns. This is primarily due to their maturity and negative cash flow position.

"The majority of multiemployer pensions had a great start to 2019, with many reaching pre-2008 funding levels," says Tim Connor, a principal and consulting actuary at Milliman and co-author of the MPFS. "Troubled plans, however, have struggled to rebound fully, and may need to depend on legislation making its way through Congress to help fund their members' pensions."

To view the complete study, go to www.milliman.com/mpfs. To receive regular updates of Milliman's pension funding analysis, contact us at [email protected].

About Milliman
Milliman is among the world's largest providers of actuarial and related products and services. The firm has consulting practices in healthcare, property & casualty insurance, life insurance and financial services, and employee benefits. Founded in 1947, Milliman is an independent firm with offices in major cities around the globe. For further information visit milliman.com.

SOURCE Milliman, Inc.