Pensions
Multiemployer Pensions Reach Highest Funding Levels in 13 Years
Robust asset gains in 2020 raised funded ratios to pre-global financial crisis levels.
Despite returns of nearly 13%, US corporate plans’ funded level remained flat for the year, thanks to falling rates, Willis says.
But financial strains on governments could make it harder to pay required contributions.
Funded levels fluctuated from 85% down to 72% and back up to 82% during first six months of the year.
Asset gain of $308 billion in April-June period lifts estimated funded ratio to 71.2% from 66%.
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Market downturn could be the final straw for struggling public pension plans.