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April 27, 2009 at 08:00 PM
Administrators of many multiemployer defined benefit pension plans are thinking about using a new, 1-year funding status freeze option.
Researchers at the International Foundation of Employee Benefit Plans, Brookfield, Wis., have published that finding in a summary of results from a recent survey of 237 foundation members who help run multiemployer plans in the United States.
In 2008, 80% of multiemployer DB plans were classified as “safe” by government standards, with enough assets to support at least 80% of pension benefits obligations.
Now, because of investment market turmoil, only 20% are classified as safe, and 38% are classified as “critical,” meaning that they have just 65% of the required funding, IFEBP researchers report.
