Multi-employer pension plans are facing substantial shortages in funding, according to a survey by an employee benefits organization, which is pointing its finger at “the economic crisis” as the catalyst.

Julie Stich

“The number of plans reporting an endangered or critical status has almost tripled,” said Julie Stich, senior information/research specialist at the International Foundation of Employee Benefit Plans, in a statement.

Exactly 73% of multiemployer pension plans failed to meet the designation of safe status, which requires it be at least 80% funded, according to the August survey by IFEBP. This data from the 213 separate plans surveyed is a contrast to last year, when the survey revealed only 25% of plans failed to report a safe status.

This year more than half of the plans are opting to use the one-year funding status freeze offered under the Worker, Retiree, and Employer Recovery Act of 2008, according to the survey.

The survey also cites “waiting to see if the markets will rebound” as the leading factor for the majority of the plans who choose the freeze option.

The most popular solutions to address the under-funded plans are increasing employer contribution levels, reducing or eliminating early retirement subsidies, and reducing future benefit accruals, according to those surveyed.