woman's hands holding a clock that is turning to dust (Photo: Shutterstock)

After several years of strong financial gains, many multiemployer pension plans areincreasingly underfunded now due to the financial market impacts ofCOVID-19 in the first months of the year. Adownturn in business activity related to the pandemic is also toblame, according to a study by international actuarial andconsulting firm Milliman.

The multiemployer pension system's aggregatefunding level is estimated to have declined from 85% to 74% betweenJanuary 1st and April 7th, the firm found, undoing much of the lastdecade's improvement. That is equivalent to an additional $21,000underfunding per active plan participant, unless the return onassets improves over current assumptions.

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MP McQueen

MP McQueen is editor-at-large, and can be reached at [email protected]

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