The Markets March 25, 2014

Multiemployer Plans in Green Zone Declines Slightly

In 2013, a solid majority of multiemployer pension plans (59%) were in the green zone as defined by the Pension Protection Act of 2006 (PPA).
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This represents a slight decline from the 60% in 2012 (see “Multiemployer Plan Health Declined in 2012”), according to Segal Consulting’s Survey of Plans’ 2013 Zone Status. The percentage of plans in the yellow zone (endangered status) was the same for 2013 as for 2012, at 14%.

Between 2012 and 2013, the percentage of plans in the red zone (critical status) increased from 26% to 27%.

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Despite the slight change, the average PPA’06 funded percentage for all surveyed plans was 84% in 2013, the same percentage as in 2012. Although the percentage of plans in the green zone has declined since 2011 (from 63%), by 2013 it was higher than in 2010 (53%) and dramatically higher than in 2009 (38%). According to the survey findings, one reason for the improvement since 2010 is the ongoing strengthening of the investment markets. For the nearly five years from April 1, 2009 (the bottom of the market) to December 31, 2013, the median return for Taft-Hartley pension funds with a 40% to 70% allocation to equities was 13.8%, according to Segal Rogerscasey (the SEC-registered investment solutions member of The Segal Group).

The zone-certification rules of PPA’06 will expire (sunset) for plan years beginning after December 31, 2014, unless Congress acts to extend or eliminate the deadline (see “Sunset of PPA Rule for Pensions Requires Clarification”).

The Segal Winter 2014 Report of Results from the Survey of Calendar-Year Plans’ 2013 Zone Status is available here.

Products March 25, 2014

ASPPA to Launch Enhanced Website

The American Society of Pension Professionals & Actuaries (ASPPA) will be launching an enhanced version of its website on April 7.
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Inspired by the resounding success of NAPA Net, a content-focused web portal for all 401(k) advisers, ASPPA is launching a portal of its own, designed to provide members and non-members with a robust, vibrant and user-friendly experience. The National Association of Plan Advisers (NAPA) is a sister organization of ASPPA.

In addition to the new ASPPA portal, which will replace the current ASPPA.org website, the National Tax-deferred Savings Association (NTSA) will be getting a portal of its own, and NAPA Net will be getting a makeover to match the general look of the other two sites. Brian Graff, executive director and CEO of the Arlington, Virginia-based ASPPA, says members will come to view these portals and the content they will contain as an integral component of their affiliation with the organization.

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“It is important to provide our members with the most critical information to enhance their ability to serve retirement plans and participants,” Graff says. “We believe these three portals will be cutting-edge communication tools that will allow us to have constant contact with our members on important issues.”

Following the example of NAPA Net, the ASPPA and NTSA portals will feature news updates, commentary and analysis that are unique to the portals and created for the membership, by the membership. All three portals will offer free newsletters that will send the latest offerings directly to subscribers’ inboxes.

Kristine Coffey, a member of ASPPA’s board of directors, says she is looking forward to the content featured on the new portals. “The content will keep me ahead of the curve and more competent,” Coffey says. “It will usher in a whole new era because it’s a focus on timely member issues, featuring the best technology that can be had.”

Adam Pozek, another ASPPA board member, says that the average member will be able to find the content they have always relied upon, including webcast and conference information, the Member Directory, credentialing tools and more, and will be able to do so much more easily. He says the redesigned site will, “Allow us as an organization to prioritize the information we deliver to our members, and give them the content they need in a logical, easy-to-follow format.”

The portals will launch on April 7. There will be a 10-day transition period, starting March 28, as the old site begins going offline and ASPPA transitions to new database software. While this will require shutting down all e-commerce software during this period, members will still be able to access any purchases made prior to March 28, or make new purchases via phone or fax.

The American Society of Pension Professionals & Actuaries (ASPPA) is a national organization of retirement plan and benefits professionals that serves as the educator, voice and advocate for the employer-based retirement system.

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