And regardless of how MEPP assets and liabilities are measured, it said, “[t]he aggregate level of underfunding in the system is significant...”

Among other results, the report found that stable plans “in terms of financial stress posed by unfunded liabilities” gained additional stability between 2009 and 2013, and looked as if they were well positioned to satisfy their obligations over the long term.

However, financially stressed plans, perhaps predictably, went the other way; the report said that this was “likely a result of decreasing numbers of active participants as manufacturing jobs and unions both experience declines.”

In fact, plans with the highest stress levels are suffering most as their stress levels increase, while plans with the lowest stress levels are improving.

The great majority of multiemployer pension plan participants, the study said, are in plans that have higher annualized costs of previously accrued benefits than the costs of current benefit accruals and administrative expenses taken together.

And, looking at that period of 2009–2013 again, “[t]he annualized costs of previously accrued benefits make up well over half of annualized plan costs.”

Both PBC and PBCF plans, it said, are sensitive to the return on investment.

The lower costs associated with high returns are a result they hope for, but should returns be low, plans—particularly those that are already stressed—could find themselves hard pressed to cope with the results.