Reports and Surveys | May 17, 2024

Strong Investment Returns Lead to Improvement in Zone Status

What’s the zone status of multiemployer pension plans as of January 1, 2024? Three-quarters of all plans in Segal’s latest survey are in the green zone following strong 2023 investment performance.

To see a snapshot of key findings from the survey, download an infographic.

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Strong Investment Returns Lead to Improvement in Zone Status Download Now

You’ll learn:

  • The median net investment return for plans in the survey and how that compares to the median returns for the previous two years
  • How the percentage of plans in critical and declining (C&D) status, critical status (the red zone), endangered status (yellow zone) and the green zone changed between 2021 and 2024
  • The change in the percentage of plans receiving PBGC Special Financial Assistance (SFA) between 2022 and 2024
  • Why the average Pension Protection Act of 2006 funded percentage changed only 1 point between 2022 and 2024 despite investment volatility
  • The impact of SFA on the average market-value funded percentage as of January 1, 2024
  • Differences in the median “burn rate” — the rate of asset decline as a percent of total assets, without regard to investment income — based on a plan’s zone status

 



2024 Zone Status Infographic thumbnail

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About the survey

The 184 plans included in this survey are those with plan years beginning January 1, 2024. As a group, these plans have more than $180 billion in assets and provide benefits to just over 2.7 million participants.

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This page is for informational purposes only and does not constitute legal, tax or investment advice. You are encouraged to discuss the issues raised here with your legal, tax and other advisors before determining how the issues apply to your specific situations.