PBGC’s latest Multiemployer Program figures even more grim than last year

[Freightmaster1]

http://www.nucpp.org/forum/threads/...es-even-more-grim-than-last-year.555/post-864
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Most multiemployer plans are well-funded, Segal survey says
By Hazel Bradford · June 1, 2018 4:07 pm


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Nearly two-thirds of calendar-year multiemployer plans have a funded status above 80%, and 28% of them are fully funded, according to a Segal Consulting survey released Friday.
One-fourth of plans are in either critical, or critical and declining status, the survey said. While only 10% of the plans surveyed are considered critical and declining, with projected depletion within 20 years, some of them are very large, and "are unlikely to recover without some form of financial assistance," Diane Gleave, Segal senior vice president and actuary, said in a statement.
Between 2017 and 2018, 50% of plans improved their funded status, while 13% saw no change, and 37% saw a decline.



The survey also found that in 2017, the plans averaged a 13.3% rate of return net of fees.
The annual survey covers 200 clients with calendar-year plans submitting certifications that were due in March, providing a current funding snapshot of what Segal said is representative of the multiemployer universe. The plans have nearly $110 billion in assets between them and cover 2.3 million participants.

Contact Hazel Bradford at [email protected] · @Bradford_PI
Most multiemployer plans are well-funded, Segal survey says









Most multiemployer plans are well-funded, Segal survey says

By Hazel Bradford

Nearly two-thirds of calendar-year multiemployer plans have a funded status above 80%, a Segal Consulting survey...

and

PBGC projects multiemployer and single-employer programs heading in opposite directions
By Hazel Bradford · May 31, 2018 3:58 pm


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The financial condition of the Pension Benefit Guaranty Corp.'s multiemployer program continued to worsen in fiscal 2017, while the single-employer program continued to improve, according to the agency's projection report released Thursday.
The annual report, which is based on actuarial evaluations, forecasts the two programs' future financial condition.
Like the fiscal year 2016 report, the multiemployer program is projected to be insolvent by the end of fiscal year 2025. The new projections show a narrower range of years for the likely date of insolvency, with a 90% chance of it happening before fiscal 2025, and less than a 1% chance that it will remain solvent after fiscal 2026. The program includes plans covering more than 10 million participants.



Over the next decade, PBGC officials project an average deficit of $89.5 billion in future dollars, an increase of $11.7 billion from last year. About 130 multiemployer plans covering 1.3 million people are expected to run out of money over the next 20 years. If the PBGC's multiemployer program does run out of money, the PBGC would have to decrease guaranteed benefits to a fraction of current values, which is less than $13,000 per year for someone with 30 years of service.
The single-employer program is likely to emerge from its smaller deficit sooner than previously anticipated, according to the report. It covers 28 million participants.
The previous projection report said the program could emerge from deficit by fiscal 2018 and was likely to emerge by 2022. This year's report shows a larger chance by 2018, and likely emergence by 2019. The 10-year projections show a wide range of potential outcomes, including a deficit of more than $100 billion, but the average is a net surplus of $26 billion in future dollars. The single-employer program has improved over the 10-year period because of PBGC premiums are projected to exceed claims and because pension plans are better funded, the PBGC said in a statement.
PBGC projects multiemployer and single-employer programs heading in opposite directions










PBGC projects multiemployer and single-employer programs heading in opposit...

By Hazel Bradford

The PBGC multiemployer program's financial condition continued to worsen in fiscal 2017, while single-employ...

 

[jimmy g]

Over the next decade, PBGC officials project an average deficit of $89.5 billion in future dollars, an increase of $11.7 billion from last year. About 130 multiemployer plans covering 1.3 million people are expected to run out of money over the next 20 years. If the PBGC's multiemployer program does run out of money, the PBGC would have to decrease guaranteed benefits to a fraction of current values, which is less than $13,000 per year for someone with 30 years of service.

So, if the PBGC will be almost $90 Billion in the hole, and 130 funds are expected to go broke, do you really believe Congress will bail out our lone fund in the meantime?

 

[Banned for Life]

FREIGHT, do you think you could get ,TDU and NUCPP, to add a link to "pension tsunami" on their websites?

 

[Jaloc]

They can bailout banks and auto companies why not pension funds too? How about giving the option for members to pay into the pension fund with their own money?