Multiemployer defined benefit plans continue to boost their funding levels, according to Segal. The consulting firm discovered the average multiemployer pension plan had an average funded ratio of 97% in 1999, up from 96% in 1998, based on its analysis of 477 U.S.-based multiemployer pension funds with assets totaling almost $116 billion.
They found that 77% of these plans were fully funded in 1999, up from 74% in 1998. This funding boost coincided with 57% of the funds indicating they were improving benefits. The percentage of fully funded pension funds has increased over the last five years, to 77% in 1999 from 65% in 1994, according to the survey.