WGA’s $3.65 Billion Pension Plan On Solid Footing & Getting Stronger

deadline.com:

EXCLUSIVE: Despite the pandemic, the WGA’s $3.65 billion Pension Plan is in “good shape” and has gotten better funded in each of the last three years, according to the Plan’s latest funding notice, which notes that its funding level of 88.8% puts it well within the so-called “Green Zone.” Plans in the Green Zone, which is the highest level of funding, have a funded percentage – which are assets divided by liabilities – higher than 80%.“We are pleased to report that for 2021 the Pension Plan maintained its Green Zone status and is projected to stay in the Green Zone into the foreseeable future,” the notice states. “By following the discipline of long-term investment criteria, over the last 30 years through the end of 2021, the Pension Plan has realized an average annual rate of return of approximately 10%.

The Directors are closely following the financial markets and have taken steps as needed, with an eye toward protecting the long-term viability of the Pension Plan.”In 2019, the Plan had $3.22 billion in assets and $3.75 billion in liabilities, with a funded percentage of 85.7%.

In 2020, it had $3.41 billion in assets and $3.95 billion in liabilities, for a funded percentage of 86.2%. In 2021, it had $3.65 billion in assets and $4.11 billion in liabilities, for a funded percentage of 88.8%.

In other words, assets have been growing faster than liabilities in each of the last three years.As of January 1, 2021, the Plan had 19,400 participants and beneficiaries, of which 9,338 were current employees; 5,518 were retired and receiving benefits, and 4,544 were retired or no longer working for the employer and have a right to future benefits.“Since 2010, the Directors took additional action to help improve the financial