The aggregate funding status of the nation’s collectively bargained multiemployer pension plans took a $26 billion dollar hit in 2015, resulting in a decline of the aggregate funded status to 75 percent, down from 79 percent in June of 2015, according to Milliman’s most recent analysis.
In the second half of 2015, total liabilities increased $ 8 billion, while the market value of assets dropped $18 billion, due largely to weak returns in equity markets for the year.
The average assumed rate of return on plan assets was 7.5 percent. Of the 1,280 multiemployer plans that Milliman reviewed, about 200 have lowered their assumed rate of return over the past several years.
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Nick Thornton
Nick Thornton is a financial writer covering retirement and health care issues for BenefitsPRO and ALM Media. He greatly enjoys learning from the vast minds in the legal, academic, advisory and money management communities when covering the retirement space. He's also written on international marketing trends, financial institution risk management, defense and energy issues, the restaurant industry in New York City, surfing, cigars, rum, travel, and fishing. When not writing, he's pushing into some land or water.
