Milliman has released its 2024 year-end Multiemployer Pension Funding Study, analyzing the funded status of U.S. multiemployer defined benefit plans.
“Strong returns during the first and third quarters of 2024 largely drove the year’s significant rise in the aggregate funded percentage, which reached the second-highest point since Milliman launched this study in 2007,” said Tim Connor, MPFS co-author.
By December 31, 2024, the aggregate funded percentage of multiemployer plans increased by 97%, up from 89% in 2023 – the second-highest level since the study began in 2007. This improvement is driven by strong investment performance, estimated at 10%, and nearly $70 billion in Special Financial Assistance provided under the American Rescue Plan Act. Of this total, $16 billion was distributed in 2024 alone. Without SFA, the funded percentage would have remained at 89%.
Among the 1,193 plans analyzed, 53% are fully funded, while 84% have reached at least 80% funding. However, 7% remain below 60% and may face insolvency. Many of these plans are expected to apply for SFA in 2025.
“We now see more than half of all plans funded 100% or better as they continue their trend of upward improvement in funded percentage,” added Connor.
