Breaking News: Alaska Ironworkers Resubmit MPRA Application

In April, 2017 the Alaska Ironworkers Pension Plan of Anchorage, AK filed to cut benefits under MPRA. In October, 2017 they withdrew that application. Today a refiled application popped up on the MPRA website.

Excerpts for the plan’s latest 5500 filing:

Plan Name: Alaska Ironworkers Pension Plan
EIN/PN: 91-6123695/001
Total participants @ 6/30/16: 824 including:
Retirees: 568
Separated but entitled to benefits: 104
Still working: 152

Asset Value (Market) @ 7/1/15: $56,786,143
Value of liabilities using RPA rate (3.34%) @ 7/1/15: $127,162,445 including:
Retirees: $95,307,862
Separated but entitled to benefits: $19,827,907
Still working: $12,026,676

Funded ratio: 44.66%
Unfunded Liabilities as of 7/1/15: $70,376,302

Asset Value (Market) as of 6/30/16: $49,524,313
Contributions: $2,276,515
Payouts: $7,451,069
Expenses: $754,609

2 responses to this post.

  1. John,

    Who is “recovered”, and who isn’t?

    “Many people considered their 401(k) plan “recovered” when their account balances returned to precrash levels. By this measure, a typical 401(k) participant who continued making contributions and stayed in a balanced portfolio would have likely “recovered” by 2010. But this measure of recovery only looks at reaching the previous high balance. It does not account for the fact that the person is now two years older and no closer to his retirement goals.”

    “pension plans measure recovery differently”

    A loss of 25 percent and it takes a 33 percent gain to get back to break-even.

    (From Zack’s finance)
    “Consider a bear market with a 30 percent drop in value, down to 70 percent of what the stock portfolio was worth. A 10 percent gain returns the portfolio to 77 percent. The next 10 percent recovers to 84.7 percent. Two more 10 percent gain years put the portfolio back to 102.5 percent of the value before the drop. So a 30 percent drop necessitates a 42 percent recovery, but 10 percent a year compounded for four years puts the account back into profitable territory.”

    Voilà, there you go!

    I have read several opinions that 2008-09 had nothing to do with the current unfunded liabilities, public or private, because the market has made a full recovery (and then some). But it looks like, after “recovery”, the plan assets are just back to where they were originally, and the workers are “years closer to retirement”.

    Meanwhile, liabilities continue to grow.

    According to Plansponsor, multi-employer plans seem to be general recovering…


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