The aggregate funding level of collectively bargained multiemployer pension plans has improved, according to the Society of Actuaries' analysis of the most recent Form 5500 plan data. Strong investment returns and increased contributions helped decrease the combined liabilities for roughly 1,300 multiemployer plans in plan year 2014.
The average assumed rate of investment returns on plan assets was 7.3% in 2013, but strong equity markets drove actual returns to an average of 15.5%.
Total liabilities among the plans vary considerably depending on the discount ratio used to assess the cost of future pension obligations, according to SOA.
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