Multi-Employer Plan Surveys and Actuarial Assumptions 2013 IBEW

Report
Multi-Employer Plan Surveys and
Actuarial Assumptions
2013 IBEW / NECA Employee Benefits
Conference Session
January 31, 2013
Stan Goldfarb, F.S.A., E.A.
Actuary and Managing Consultant
Horizon Actuarial Services, LLC
Atlanta
n
Cleveland
n
Los Angeles
n
Miami
n
Washington, D.C.
Presentation Contents
Page
2
I.
Update on Trends In Mortality
II.
Capital Market Assumptions Survey
III. Inventory of Multiemployer Construction Industry Pension Plans
12
17
X:\Associates\Goldfarb\TRAINING MATERIALS\PPPresentations\IBEW-NECA Presentation SG 1-31-2013.pptx
“Multi-Employer Plan Surveys & Actuarial Assumptions”
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2013 IBEW/NECA Employee Benefits Conference, Naples, FL
Update on Trends in Mortality
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2013 IBEW/NECA Employee Benefits Conference, Naples, FL
How Good is Your Mortality Assumption?

How has experience conformed over the last few years?

Should you reflect future mortality improvements?

The actuarial standards require us to at least consider future mortality improvements
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Obesity
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Obesity - Mortality
Overweight and obesity increase the rate of mortality1
 Lowest levels of mortality are associated with BMI of 22.5-25
 Men with a BMI of 30 or more have a risk of death 1.61 times
greater than those with a BMI of between 22.5 and 24.92
 Research shows that overweight and obesity are responsible
for1:
• 16% of mortality from ages 30 to 44
• 17% of mortality from ages 45 to 54
• 14% of mortality from ages 55 to 64
1. Obesity and its Relation to Mortality and Morbidity Costs; Behan, Cox
2. Body mass index and mortality among US male physicians; Annuls of Epidemiology; Ajani, Lotufo, Gaziano, Lee, Spelsberg, Buring, Willit,
Manson
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Obesity - Prevalence
Survey Period
Overweight
(BMI>25)
Obese
(BMI>30)
Extremely obese
(BMI >40)
1960-1962
44.8%
13.3%
0.9%
1971-1974
47.2%
14.5%
1.3%
1976-1980
47.1%
15.0%
1.4%
1988-1994
55.8%
23.2%
3.0%
1999-2000
64.5%
30.9%
5.0%
2001-2002
65.7%
31.3%
5.4%
2003-2004
66.3%
32.9%
5.1%
* The epidemiology of obesity. Gastroenterology 132(6):2087-2102; Ogen, Yanoskim Carroll, Flegal
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Obesity – Prevalence - 1985
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Obesity – Prevalence - 1990
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Obesity – Prevalence - 2000
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2013 IBEW/NECA Employee Benefits Conference, Naples, FL
Obesity – Prevalence - 2005
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Obesity – Prevalence - 2010
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Capital Market Assumptions Survey
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2012 Survey Overview



2012 Survey Respondents
Horizon requested capital market
assumptions from several different
investment consulting firms.
2012 capital market assumptions
requested:
1.
Callan Associates
2.
CAPTRUST Financial Advisors
3.
AJ Gallagher Fiduciary Advisors /
Independent Fiduciary Services
4.
Hewitt EnnisKnupp
5.
Investment Performance Services, LLC
6.
RV Kuhns & Associates

Expected returns (arithmetic) by asset class
7.
Marco Consulting Group

Standard deviations of expected returns
(arithmetic) by asset class
8.
Marquette Associates
9.
Meketa Investment Group

Correlation coefficient matrix
10. JP Morgan

Commentary on investment horizon and whether
expected returns are different for the short term
versus the long term
Seventeen (17) investment consulting
firms responded.
11. Morgan Stanley / Graystone Consulting
12. New England Pension Consultants
13. Pension Consulting Alliance
14. The PFM Group
15. SEI
16. Towers Watson
17. Wurts & Associates
A full report on the survey can be found at www.horizonactuarial.com.
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Expected Returns by Asset Class
The following chart shows the ranges of expected returns (arithmetic) for the different asset classes for the
seventeen investment advisors who responded to the survey. There are considerable differences in different
advisors’ expected returns for some asset classes. As the saying goes, “reasonable people may differ.”
2012 Survey: Expected Returns by Asset Class
ASSET CLASS [ Minimum | Composite | Maximum ] 0%
US Equity - Large Cap
2%
4%
6%
8%
10%
12%
[ 7.8% | 9.4% | 10.7% ]
US Equity - Small/Mid Cap [ 7.7% | 10.5% | 12.7% ]
International Equity - Developed [ 8.1% | 9.9% | 11.8% ]
International Equity - Emerging [ 9.8% | 12.6% | 14.8% ]
US Fixed Income - Investment [ 2.5% | 4.1% | 6.7% ]
US Fixed Income - High Yield
[ 5.7% | 7.4% | 8.9% ]
International Fixed Income - Developed [ 2.6% | 3.8% | 5.3% ]
International Fixed Income - Emerging [ 6.4% | 7.2% | 10.7% ]
Treasuries (Cash Equivalents)
[ 1.3% | 2.8% | 4.0% ]
TIPS (Inflation-Protected) [ 2.6% | 3.5% | 5.1% ]
Real Estate
[ 6.3% | 7.6% | 9.1% ]
Hedge Funds [ 5.9% | 7.3% | 11.4% ]
Commodities [ 4.8% | 7.3% | 9.2% ]
Infrastructure [ 7.2% | 8.3% | 9.8% ]
Private Equity
[ 10.6% | 12.9% | 15.4% ]
SOURCE: Horizon Actuarial survey of 2012 capital market assumptions from 17 independent investment advisors. Returns are ARITHMETIC.
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14%
16%
2012 Survey Composite Capital Market Assumptions
The following are the composite capital market assumptions from the survey.
Each survey respondent was given equal weight in determining the average assumptions.
Horizon Actuarial 2012 Survey of Capital Market Assumptions
Composite Assumptions
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
Asset Class
US Equity - Large Cap
US Equity - Small/Mid Cap
International Equity - Developed
International Equity - Emerging
US Fixed Income - Investment
US Fixed Income - High Yield
International Fixed Income - Developed
International Fixed Income - Emerging
Treasuries (Cash Equivalents)
TIPS (Inflation-Protected)
Real Estate
Hedge Funds
Commodities
Infrastructure
Private Equity
E[R]
StdDev
9.37% 18.23%
10.54% 23.01%
9.89% 20.41%
12.61% 28.27%
4.13%
5.89%
7.37% 12.28%
3.77%
7.28%
7.23% 13.21%
2.77%
1.89%
3.49%
6.01%
7.56% 11.73%
7.25%
9.00%
7.29% 18.72%
8.29% 13.78%
12.90% 25.14%
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
Correlation Matrix
1
2
3
1.00 0.86 0.80
0.86 1.00 0.71
0.80 0.71 1.00
0.68 0.66 0.72
0.19 0.11 0.13
0.62 0.59 0.55
0.07 0.02 0.25
0.51 0.48 0.45
0.03 0.00 0.00
0.02 (0.02) 0.04
0.33 0.23 0.29
0.58 0.55 0.58
0.25 0.23 0.32
0.55 0.50 0.55
0.76 0.71 0.67
4
0.68
0.66
0.72
1.00
0.05
0.54
0.10
0.59
(0.02)
0.06
0.23
0.58
0.36
0.54
0.59
5
0.19
0.11
0.13
0.05
1.00
0.34
0.49
0.44
0.23
0.65
0.05
0.15
0.06
0.19
0.04
6
0.62
0.59
0.55
0.54
0.34
1.00
0.16
0.61
(0.00)
0.22
0.22
0.47
0.24
0.52
0.52
7
0.07
0.02
0.25
0.10
0.49
0.16
1.00
0.26
0.12
0.43
(0.04)
0.11
0.13
0.32
(0.01)
8
0.51
0.48
0.45
0.59
0.44
0.61
0.26
1.00
0.05
0.28
0.05
0.46
0.27
0.42
0.39
SOURCE: Horizon Actuarial survey of 2012 capital market assumptions from 17 independent investment advisors.
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0.03
0.00
0.00
(0.02)
0.23
(0.00)
0.12
0.05
1.00
0.16
0.13
0.11
0.04
0.05
0.04
10
0.02
(0.02)
0.04
0.06
0.65
0.22
0.43
0.28
0.16
1.00
0.06
0.15
0.28
0.22
(0.04)
11
0.33
0.23
0.29
0.23
0.05
0.22
(0.04)
0.05
0.13
0.06
1.00
0.23
0.26
0.35
0.38
12
0.58
0.55
0.58
0.58
0.15
0.47
0.11
0.46
0.11
0.15
0.23
1.00
0.37
0.48
0.52
13
0.25
0.23
0.32
0.36
0.06
0.24
0.13
0.27
0.04
0.28
0.26
0.37
1.00
0.37
0.26
14
0.55
0.50
0.55
0.54
0.19
0.52
0.32
0.42
0.05
0.22
0.35
0.48
0.37
1.00
0.50
15
0.76
0.71
0.67
0.59
0.04
0.52
(0.01)
0.39
0.04
(0.04)
0.38
0.52
0.26
0.50
1.00
Expected Return: Hypothetical Pension Fund
This exhibit shows expected returns for a hypothetical multiemployer pension fund based on (1) the most
conservative advisor’s assumptions, (2) the composite assumptions from the survey, and (3) the most optimistic
advisor’s assumptions. Expected geometric returns are projected over a 20-year period.
Hypothetical Multiemployer Pension Fund - 2012 Survey
Asset Class
US Equity - Large Cap
US Equity - Small/Mid Cap
Non-US Equity - Developed
Non-US Equity - Emerging
US Fixed Income - Investment
US Fixed Income - High Yield
Non-US Fixed Income - Developed
Non-US Fixed Income - Emerging
Treasuries (Cash Equivalents)
TIPS (Inflation-Protected)
Real Estate
Hedge Funds
Commodities
Infrastructure
Private Equity
Inflation
TOTAL PORTFOLIO
Weight
20.0%
10.0%
7.5%
5.0%
10.0%
5.0%
5.0%
2.5%
5.0%
5.0%
10.0%
5.0%
2.5%
2.5%
5.0%
N/A
100.0%
Expected Return (Arithmetic)
Minimum Composite Maximum
7.8%
9.4%
10.7%
7.7%
10.5%
12.7%
8.1%
9.9%
11.8%
9.8%
12.6%
14.8%
2.5%
4.1%
6.7%
5.7%
7.4%
8.9%
2.6%
3.8%
5.3%
6.4%
7.2%
10.7%
1.3%
2.8%
4.0%
2.6%
3.5%
5.1%
6.3%
7.6%
9.1%
5.9%
7.3%
11.4%
4.8%
7.3%
9.2%
7.2%
8.3%
9.8%
10.6%
12.9%
15.4%
2.2%
2.7%
3.3%
Conservative
Survey
Advisor
Composite
1-Year Arithmetic Returns
Expected Return
Standard Deviation
6.96%
11.23%
7.92%
11.04%
9.09%
10.83%
20-Year Geometric Returns
75th Percentile
67th Percentile
50th Percentile
33rd Percentile
25th Percentile
8.02%
7.41%
6.33%
5.25%
4.63%
8.97%
8.37%
7.31%
6.24%
5.64%
10.14%
9.55%
8.50%
7.46%
6.87%
Probability of Exceeding 7.50%
32.0%
46.9%
66.1%
Considerations and Limitations
- Target allocations may be approximated if certain asset classes are not included in the survey.
- Capital market assumptions are based on indexed returns and do not reflect anticipated alpha.
- Many investment advisors provided assumptions over a short time horizon (10 years or less).
- For advisors that provided both short term and long-term assumptions, long-term assumptions were
generally higher by 100 to 200 basis points for fixed income investments.
20-Year Annualized (Geometric) Returns
11.0%
10.5%
10.0%
9.5%
9.0%
8.5%
8.0%
7.5%
7.0%
6.5%
6.0%
5.5%
5.0%
4.5%
75th
percentile
50th
percentile
25th
percentile
Conservative Composite
Advisor
Assumptions
SOURCE: Horizon Actuarial survey of 2012 capital market assumptions from 17 independent investment advisors.
“Multi-Employer Plan Surveys & Actuarial Assumptions”
January 31, 2013
Optimistic
Advisor
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Optimistic
Advisor
Inventory of Multiemployer Construction Industry
Pension Plans – 2012 Edition
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Inventory of Multiemployer Construction Industry
Pension Plans – 2012 Edition
 Joint project between Horizon Actuarial and Mechanical Contractors
Association of America
 Purpose is to summarize trends in pension plans based on data from
Form 5500’s filed with the IRS
 Over 800 plans included in the inventory
 10 years of historical data (2001-2010)
 Results broken down by assets:
 Large Plans – At least $500 million in assets
 Medium Plans – Between $100-$500 million in assets
 Small Plans – Under $100 million in assets
 Full report available at www.horizonactuarial.com
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Distribution of Plans by Asset Value (MVA)
MCAA/HAS Construction Industry
Survey (Fig. 2.01)
Distribution of Plans by Asset Value
At least $5.000B (0.4%)
SAMPLE PLAN
3
$2.000B to $4.999B (1.6%)
13
$1.000B to $1.999B (3.1%)
25
$500M to $999M (4.3%)
35
$200M to $499M (11.8%)
97
$100M to $199M (14.4%)
118
$50M to $99M (17.5%)
143
$25M to $49M (18.9%)
155
$5M to $24M (22.7%)
186
Under $5M (5.4%)
44
-
50
100
150
Source: 2009-2010 Form 5500 data
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200
Distribution of Plans by Participant Count
MCAA/HAS Construction Industry
Survey (Fig. 2.02)
Distribution of Plans by Participants
SAMPLE PLAN
At least 50,000 (1.1%)
9
25,000 to 49,999 (2.1%)
17
10,000 to 24,999 (4.8%)
39
5,000 to 9,999 (6.2%)
51
4,000 to 4,999 (3.9%)
32
3,000 to 3,999 (6.5%)
53
2,000 to 2,999 (8.1%)
66
1,500 to 1,999 (9.4%)
77
1,000 to 1,499 (12.3%)
101
500 to 999 (22.1%)
181
100 to 499 (20.1%)
165
Under 100 (3.4%)
28
Source: 2009-2010 Form 5500 data
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Maturity (Active/Inactive
Participants)
MCAA/HAS Construction Industry Survey (Fig. 3.02)
Construction Industry Plans
Participant Ratio: Actives to Inactives (End of Plan Year)
4.00
3.50
3.00
2.50
2.00
1.50
1.00
0.50
0.00
Plan Year Beginning
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
Number of Plans
724
789
788
785
793
794
801
754
801
574
95th Percentile
3.47
3.56
2.98
2.68
2.69
2.46
2.54
2.37
2.14
1.90
75th Percentile
1.74
1.63
1.52
1.43
1.36
1.34
1.32
1.27
1.14
1.06
50th Percentile
1.19
1.16
1.10
1.02
0.99
0.98
0.97
0.93
0.82
0.74
25th Percentile
0.83
0.78
0.75
0.72
0.69
0.67
0.68
0.66
0.58
0.51
5th Percentile
0.42
0.40
0.37
0.36
0.33
0.34
0.34
0.33
0.28
0.25
All Construction Industry Plans
SAMPLE PLAN
Source: Form 5500 Data
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
0.82
0.82
0.84
0.86
0.87
0.93
0.96
0.91
0.76
0.67
0.68
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Cash FlowMCAA/HAS
as a Percentage
of Plan Assets
Construction Industry Survey (Fig. 4.02)
Construction Industry Plans
Cash Flow as a Percentage of Assets
6.00
4.00
2.00
0.00
-2.00
-4.00
-6.00
-8.00
-10.00
-12.00
Plan Year Beginning
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
Number of Plans
693
763
746
737
764
773
777
724
780
555
95th Percentile
4.1
4.2
4.3
3.3
3.4
3.8
4.5
4.3
4.2
4.1
75th Percentile
0.4
(0.0)
(0.4)
(0.6)
(0.5)
(0.2)
0.1
0.0
(0.8)
(1.0)
50th Percentile
(1.9)
(2.3)
(2.8)
(2.7)
(2.6)
(2.4)
(1.9)
(2.1)
(3.6)
(3.6)
25th Percentile
(3.9)
(4.5)
(5.2)
(4.8)
(4.7)
(4.3)
(3.9)
(4.2)
(6.3)
(5.9)
5th Percentile
(6.5)
(7.1)
(8.0)
(7.5)
(7.4)
(7.3)
(6.8)
(7.3)
(10.9)
(9.5)
All Construction Industry Plans
SAMPLE PLAN
Source: Form 5500 Data
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
(3.3)
(3.3)
(3.6)
(1.9)
(0.5)
0.3
(0.3)
(0.9)
(2.7)
(3.1)
(2.8)
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Net Investment
Returns
MCAA/HAS
Construction Industry Survey (Fig. 5.01)
Construction Industry Plans
Net Investment Returns
30%
20%
10%
0%
-10%
-20%
-30%
Plan Year Beginning
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
Number of Plans
320
370
370
349
367
376
378
375
382
377
95th Percentile
4.5%
1.3%
23.8%
12.8%
9.0%
14.8%
10.1%
-6.2%
25.2%
14.4%
75th Percentile
0.8%
-5.0%
19.2%
10.2%
6.9%
12.5%
8.0%
-19.9%
20.3%
12.7%
50th Percentile
-1.6%
-7.8%
16.7%
8.5%
5.7%
10.9%
6.7%
-23.0%
16.2%
11.5%
25th Percentile
-3.8%
-10.3%
13.9%
6.8%
4.5%
9.5%
5.6%
-25.8%
12.6%
9.9%
5th Percentile
-7.9%
-14.4%
7.1%
4.0%
2.7%
6.0%
3.4%
-29.2%
6.7%
7.1%
CALENDAR YEAR PLANS ONLY
SAMPLE PLAN
Source: Form 5500 Data
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
(1.6%)
(9.7%)
14.7%
7.1%
9.2%
14.0%
9.3%
(17.2%)
11.5%
10.4%
(1.5%)
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Net Investment Return Assumption
MCAA/HAS Construction Industry
Survey (Fig. 5.03)
Investment Return Assumption
All Construction Industry Plans
SAMPLE PLAN
8.50% or more (0.6%)
8.25% per year (0.1%)
8.00% per year (11.0%)
7.75% per year (5.4%)
7.50% per year (49.9%)
7.25% per year (5.1%)
7.00% per year (21.3%)
6.75% per year (1.7%)
6.50% per year (2.3%)
6.25% per year (0.3%)
6.00% per year (1.7%)
5.75% per year (0.3%)
5.50% or less (0.4%)
Not Available
4
1
80
39
363
37
155
12
17
2
12
2
3
92
0
200
400
Source: 2009-2010 Form 5500 data
“Multi-Employer Plan Surveys & Actuarial Assumptions”
January 31, 2013
24
2013 IBEW/NECA Employee Benefits Conference, Naples, FL
MVA Funded
Status
MCAA/HAS Construction Industry Survey (Fig. 6.01)
Construction Industry Plans
End of Year Funded Percentage (Market Value)
1.30
1.20
1.10
1.00
0.90
0.80
0.70
0.60
0.50
0.40
Plan Year Beginning
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
Number of Plans
280
334
331
332
352
362
363
357
366
323
95th Percentile
1.11
0.98
1.04
1.14
1.15
1.23
1.24
0.95
1.03
1.07
75th Percentile
0.93
0.80
0.89
0.93
0.92
0.97
0.98
0.76
0.85
0.88
50th Percentile
0.85
0.73
0.80
0.82
0.82
0.86
0.87
0.68
0.76
0.80
25th Percentile
0.77
0.65
0.71
0.73
0.73
0.77
0.79
0.61
0.67
0.71
5th Percentile
0.63
0.50
0.56
0.57
0.56
0.59
0.63
0.42
0.47
0.50
CALENDAR YEAR PLANS ONLY
SAMPLE PLAN
Source: Form 5500 Data
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
0.91
0.77
0.83
0.85
0.91
0.97
1.03
0.79
0.84
0.87
0.81
“Multi-Employer Plan Surveys & Actuarial Assumptions”
January 31, 2013
25
2013 IBEW/NECA Employee Benefits Conference, Naples, FL
Election of 2010 PRA Funding Relief
MCAA/HAS Construction Industry
Survey (Fig. 6.04)
HAS Pension Database
Funding Relief Elections
HAS Pension Database
Funding Relief Elections (Estimated)
Construction Industry Plans
PPA Status:
2009 Plan Year
All
Plans
Elected
Relief
% Elected
Relief
PPA Status:
2009 Plan Year
All
Plans
Elected
Relief
% Elected
Relief
“Green Zone”
166
83
50.0%
"Green Zone"
25
22
88.0%
Endangered
127
85
66.9%
Endangered
12
9
75.0%
41
28
68.3%
Seriously End.
10
9
90.0%
Critical
122
90
73.8%
Critical
15
10
66.7%
TOTAL
456
286
62.7%
TOTAL
62
50
80.6%
Seriously End.
“Multi-Employer Plan Surveys & Actuarial Assumptions”
January 31, 2013
26
2013 IBEW/NECA Employee Benefits Conference, Naples, FL
Normal Cost per Active Participant
MCAA/HAS Construction Industry Survey (Fig. 7.01)
Construction Industry Plans
Normal Cost of Benefits (Per Active Participant)
8,000
7,000
6,000
5,000
4,000
3,000
2,000
1,000
0
Plan Year Beginning
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
Number of Plans
253
302
308
300
312
320
334
288
295
301
95th Percentile
4,372
4,458
5,250
4,607
4,660
4,679
5,903
5,551
6,732
6,184
75th Percentile
2,690
2,890
2,893
2,854
2,808
2,963
3,251
3,330
3,630
3,382
50th Percentile
1,944
2,007
1,985
2,059
2,038
2,032
2,169
2,267
2,554
2,261
25th Percentile
1,301
1,342
1,332
1,347
1,314
1,305
1,423
1,438
1,590
1,453
5th Percentile
655
556
573
555
495
545
625
570
594
558
CALENDAR YEAR PLANS ONLY
SAMPLE PLAN
Source: Form 5500 Data
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2,089
2,452
2,687
2,403
2,834
2,663
2,660
2,777
2,565
2,564
2,553
“Multi-Employer Plan Surveys & Actuarial Assumptions”
January 31, 2013
27
2013 IBEW/NECA Employee Benefits Conference, Naples, FL
15-Year Amortization of Unfunded Liabilities per Active Participant
MCAA/HAS Construction Industry Survey (Fig. 7.03)
Construction Industry Plans
15-Year Amortization of Unfunded Liabilities (Per Active Participant)
16,000
14,000
12,000
10,000
8,000
6,000
4,000
2,000
0
Plan Year Beginning
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
Number of Plans
278
326
335
327
355
362
363
359
366
323
95th Percentile
4,286
5,764
8,477
9,318
11,013
9,629
8,380
8,243
14,401
12,760
75th Percentile
2,109
3,119
5,061
4,300
4,413
4,492
3,686
3,040
7,821
7,035
50th Percentile
814
1,809
3,359
2,390
2,337
2,437
1,844
1,239
4,556
4,206
25th Percentile
-
687
1,684
1,155
969
864
438
4
2,436
1,855
5th Percentile
-
-
72
-
-
-
-
-
318
5
CALENDAR YEAR PLANS ONLY
SAMPLE PLAN
Source: Form 5500 Data
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2,087
2,609
4,338
3,295
3,632
2,915
2,059
1,568
4,291
4,423
3,930
“Multi-Employer Plan Surveys & Actuarial Assumptions”
January 31, 2013
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2013 IBEW/NECA Employee Benefits Conference, Naples, FL
Employer Contributions in Prior Year per Active Participant
MCAA/HAS Construction Industry Survey (Fig. 7.04)
Construction Industry Plans
Employer Contributions (Per Active Participant)
20,000
18,000
16,000
14,000
12,000
10,000
8,000
6,000
4,000
2,000
0
Plan Year Beginning
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
Number of Plans
315
364
360
344
362
370
372
369
378
372
95th Percentile
9,812
9,530
10,317
10,794
12,000
13,846
15,806
16,843
16,305
18,044
75th Percentile
5,768
5,792
5,899
6,230
6,751
7,704
8,581
9,449
8,812
9,422
50th Percentile
4,030
4,133
4,198
4,579
4,886
5,703
6,189
6,383
6,065
6,556
25th Percentile
2,671
2,491
2,637
2,883
2,859
3,344
3,793
3,897
3,703
3,947
5th Percentile
865
1,071
1,086
1,108
1,182
1,487
1,488
1,772
1,513
1,973
CALENDAR YEAR PLANS ONLY
SAMPLE PLAN
Source: Form 5500 Data
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
5,850
5,736
5,992
6,627
7,128
7,350
6,834
6,376
5,604
6,250
7,443
“Multi-Employer Plan Surveys & Actuarial Assumptions”
January 31, 2013
29
2013 IBEW/NECA Employee Benefits Conference, Naples, FL
Contributions vs. Cost per Active Participant
MCAA/HAS Construction Industry Survey (Fig. 7.05)
Construction Industry Plans
Contributions vs. Costs (Per Active Participant)
10,000
5,000
0
-5,000
-10,000
-15,000
Plan Year Beginning
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
Number of Plans
246
299
298
287
305
315
328
283
302
306
95th Percentile
4,130
3,119
1,471
2,265
2,596
3,173
5,052
7,535
2,804
5,004
75th Percentile
1,193
307
(571)
156
554
1,108
2,050
3,438
(416)
901
50th Percentile
394
(408)
(1,664)
(756)
(206)
189
970
1,740
(2,246)
(968)
25th Percentile
(366)
(1,481)
(3,254)
(1,957)
(1,558)
(904)
(145)
402
(4,428)
(2,928)
5th Percentile
(1,943)
(3,489)
(6,083)
(5,550)
(6,774)
(4,314)
(2,481)
CALENDAR YEAR PLANS ONLY
SAMPLE PLAN
(1,945) (10,967) (8,318)
Source: Form 5500 Data
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
1,674
675
(1,033)
929
662
1,772
2,115
2,031
(1,252)
(737)
960
“Multi-Employer Plan Surveys & Actuarial Assumptions”
January 31, 2013
30
2013 IBEW/NECA Employee Benefits Conference, Naples, FL

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