The first half of the year was a good one for American multi-employer pension plans (MEPPS), which saw their funded level near its best position since the financial meltdown of the Great Recession.
According to new data from Milliman the plans have an average funded level of 81 per cent, but “these plans still face significant pressures, with many on track to require assistance in the future from the Pension Benefit Guaranty Corporation (PBGC),” writes Jane Meacham for Compensation Management News.
The “interim update by Milliman compared changes in estimated funding levels” at American multi-employer DB plans from Dec. 31, 2016, to June 30, 2017.
“The aggregate funded percentage for all plans is estimated to have improved to 81 per cent as of June 30 from 77 per cent at the end of 2016,” with the overall shortfall reduced by $21 billion, she writes.
More: News not as bright for plans deemed to be in critical status.

ARIA provides a forum for an informed discussion on retirement income adequacy, and other related issues, including pension and retirement coverage, and defined benefit pension plans – ARIA pensions blog, 12 Dunlop Street, Barrie, ON, L4N 1V6 – sitemanager@ariapensions

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