This is higher than the average funded status of 90% reported in Segal’s survey of actuarial predictions for plan status (See Segal Finds PPA Funded Status of Multiemployer Plans Improving ). Additionally, just under a quarter of plans anticipated having a funded percentage of 100% or more, but following actuarial certifications, Segal found 37% of plans are 100% or more funded.
Segal’s Survey of Calendar-Year Plans’ Actual Zone Status revealed 83% of plans are in the green zone – much higher than the projected 66%. Under the PPA rules, actuaries for calendar-year plans must certify their zone status by March 31, 2008. A plan will be classified as either being in “endangered status” (the yellow zone) or “critical status” (the red zone) if there is a funding problem, but those neither “endangered” nor “critical” are said to be in the green zone.
Only 10% of plan in the Segal survey are in the yellow zone (compared to 25% predicted), and only 7% of plan are in the red zone (compared to 9%).
By industry, all surveyed plans in the retail trade and food and entertainment industries were in the green zone. The service and transportation industries had the most plans in the red zone, at 12% each, but also had 65% and 68%, respectively, in the green zone.
Segal said the survey data showed plans with assets of $25 million or greater were more likely to be in the green zone than plans with assets under $25 million.
More information is at www.segalco.com .