What is an Annual Funding Notice? (…and why it’s good news)

This newsletter includes the 2021 Annual Funding Notice, your yearly update on how well the Basic Pension Plan is funded.

We are happy to report that the Basic Plan remains healthy and ready to meet the needs of this and future generations of DGA members—with a funded percentage of 90.7% as of January 1, 2021, with liabilities accrued on a 6.9% assumed rate of return. This funded percentage increased more than 2% from the 88.6% funding as of January 1, 2020. The Basic Pension Plan remains in the Green Zone under the Pension Protection Act (PPA), as it has since the PPA was enacted in 2006. As of January 1, 2021, the Basic Pension Plan has a fair market value of more than $2.2 Billion.

The PPA requires all multi-employer defined benefit pension plans, like the Basic Pension Plan, to provide an annual notice about its financial status, including the plan’s funding percentage, assets and liabilities, and a description of the benefits guaranteed by the Pension Benefit Guaranty Corporation (PBGC).