Multiemployer Administrative 

Expense Supplement

2017 Data Tables
2017 Multiemployer Supplement

This supplement, an update to the 2015 version1, examines 

Multiemployer (ME) Administrative Expenses (AE) for the PBGC 

insured ME pension system. 

Two measures of AE are presented:

• The ratio of AE to the benefit payments made to participants

• The per participant AE ratio

Statistics based on these measures are presented for three 

categories: 

• Plan Zone Status

• Industry 

• Plan Size

1

1 pbgc.gov/sites/default/files/2015-pbgc-data-tables-multiemployer-graphical-supplement.pdf
Challenges in Understanding Expenses

Given the complexities of the topic, there is not a single 

measurement or set of measures that inform(s) on all aspects of 

the cost to administer a pension plan. 

Costs can be influenced by many factors, including:

• Plan size

• Plan provisions

• Benefit complexity

• How actively the plan is managed

• Number of participants receiving benefits at the time of measurement

• Plan maturity/age

2
Components of Multiemployer Expenses

ME plans report expenses on the Form 5500, Schedules H/I2. These 

expenses include:

• Professional fees – Fees paid to actuarial, legal and audit (among others) 

professionals.

• Contract administration fees – These fees are paid to a contract 

administrator for performing administrative services for the plan on a 

contract basis.

• Investment fees (for purposes of this study, investment expenses are 

excluded)

• Other expenses – Include salaries and other compensation and expenses 

for supplies, equipment, rent, etc. Also includes premium payments to 

PBGC. 

3

2 More detail is available in the Form 5500 instructions, found at: dol.gov/agencies/ebsa/employers-and-advisers/planadministration-and-compliance/reporting-and-filing/form-5500
Administrative Expenses Distribution

4

$377 

23%

$287 

18%

$945 

59%

2016 Plan Year Administrative Expenses3

($millions)

Professional Fees Contract Administration Other Expenses

At the beginning of the 

2016 plan year, ME 

plans reported 

approximately $ 1.6 

billion in AE; which is 

less than a half percent 

of the system’s assets 

($466.98 billion).

3 For purposes of this report, Investment fees are excluded.
Expenses by Zone Status

5

Administrative Expenses as a Percent of Benefits Paid, 2016 data

Zone Minimum 25th Pctl Median Mean 75th Pctl Maximum Std Dev Plan Count Excluded Plans* Total Plans

Green 1.2% 3.7% 6.0% 11.6% 10.6% 584.2% 28.1% 742 12 754

Yellow 1.3% 3.0% 4.2% 5.7% 6.5% 40.5% 5.2% 133 3 136

Red 0.9% 3.5% 5.9% 10.4% 10.0% 110.9% 14.8% 209 2 211

Critical & Declining 1.0% 3.9% 6.5% 8.5% 11.4% 41.9% 6.4% 101 3 104

Terminated 2.5% 6.4% 12.7% 17.0% 21.8% 79.6% 14.9% 59 1 60

Insolvent 2.3% 5.9% 16.2% 23.6% 25.9% 146.9% 25.3% 50 5 55

Unclassifiable 2.9% 2.9% 11.5% 11.5% 20.1% 20.1% 12.2% 2 1 3

System Wide 0.9% 3.7% 6.0% 11.3% 11.2% 584.2% 23.4% 1296 27 1323

* Plans that did not report a value for either Administrative Expenses or Participants are excluded.
Expenses by Zone Status

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Administrative Expenses per Participant, 2016 data

Note: The 2016 ME 

PBGC premium rate was 

$27 per participant.

Zone Minimum 25th Pctl Median Mean 75th Pctl Maximum Std Dev Plan Count Excluded Plans* Total Plans

Green $ 22 $ 166 $ 244 $ 286 $ 353 $ 2,295 $ 189 742 12 754

Yellow $ 71 $ 171 $ 234 $ 378 $ 345 $ 10,689 $ 929 133 3 136

Red $ 42 $ 147 $ 239 $ 295 $ 329 $ 2,808 $ 269 209 2 211

Critical & Declining $ 77 $ 166 $ 287 $ 332 $ 399 $ 1,227 $ 214 101 3 104

Terminated $ 82 $ 165 $ 251 $ 326 $ 397 $ 1,647 $ 257 59 1 60

Insolvent $ 50 $ 106 $ 192 $ 267 $ 322 $ 1,593 $ 258 50 5 55

Unclassifiable $ 215 $ 215 $ 293 $ 293 $ 372 $ 372 $ 111 2 1 3

System Wide $ 22 $ 163 $ 243 $ 301 $ 353 $ 10,689 $ 360 1296 27 1323

* Plans that did not report a value for either Administrative Expenses or Participants are excluded.
Expenses by Industry 

Administrative Expenses as a Percent of Benefits Paid, 2016 data

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Industry Minimum 25th Pctl Median Mean 75th Pctl Maximum Std Dev Plan Count Excluded Plans* Total Plans

Construction 1.2% 3.3% 5.0% 7.2% 7.7% 126.7% 8.2% 728 5 733

Manufacturing 1.0% 5.9% 9.3% 14.2% 19.0% 94.1% 13.9% 133 3 136

Transportation 0.9% 3.4% 5.2% 12.8% 11.4% 215.1% 25.8% 126 8 134

All other industries 1.5% 4.8% 9.5% 18.9% 17.3% 584.2% 41.0% 309 11 320

* Plans that did not report a value for Administrative Expenses, Benefits paid or Industry code are excluded.
Expenses by Industry

Administrative Expenses per Participant, 2016 data

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Industry Minimum 25th Pctl Median Mean 75th Pctl Maximum Std Dev Plan Count Excluded Plans* Total Plans

Construction $ 59 $ 186 $ 258 $ 300 $ 361 $ 1,647 $ 179 728 5 733

Manufacturing $ 69 $ 137 $ 210 $ 264 $ 309 $ 1,068 $ 190 133 3 136

Transportation $ 77 $ 170 $ 292 $ 417 $ 410 $ 10,689 $ 949 126 8 134

All other industries $ 22 $ 121 $ 203 $ 275 $ 320 $ 2,808 $ 288 310 10 320

* Plans that did not report a value for Administrative Expenses, Participants or Industry code are excluded.
Expenses by Plan Size

Administrative Expenses as a Percent of Benefits Paid, 2016 data

9

Plan Size Minimum 25th Pctl Median Mean 75th Pctl Maximum Std Dev Plan Count Excluded Plans* Total Plans

Under 250 1.3% 8.9% 15.6% 21.9% 21.8% 146.9% 23.3% 99 25 124

250-499 1.7% 6.4% 11.0% 16.2% 19.0% 126.7% 17.4% 146 0 146

500-999 1.0% 4.3% 7.2% 11.5% 12.3% 118.6% 14.3% 238 0 238

1,000-4,999 1.2% 3.6% 5.3% 9.8% 8.0% 584.2% 29.5% 526 2 528

Over 5,000 0.9% 2.6% 4.1% 7.5% 6.6% 240.8% 17.3% 287 0 287

* Plans that did not report a value for Administrative Expenses or Participants are excluded.
Expenses by Plan Size

Administrative Expenses per Participant, 2016 data

10

Plan Size Minimum 25th Pctl Median Mean 75th Pctl Maximum Std Dev Plan Count Excluded Plans* Total Plans

Under 250 $ 63 $ 362 $ 486 $ 631 $ 631 $ 10,689 $ 1,061 99 25 124

250-499 $ 65 $ 279 $ 384 $ 463 $ 528 $ 2,808 $ 346 146 0 146

500-999 $ 91 $ 222 $ 305 $ 345 $ 407 $ 1,576 $ 196 238 0 238

1,000-4,999 $ 68 $ 166 $ 227 $ 249 $ 298 $ 1,240 $ 118 527 1 528

Over 5,000 $ 22 $ 101 $ 139 $ 165 $ 216 $ 584 $ 91 287 0 287

* Plans that did not report a value for Administrative Expenses or Benefits Paid are excluded.
Multiemployer Expenses Observations

• Terminated and Insolvent groups show:

 Dramatically higher expense to benefits paid ratios

o This may be a function of differences in plan composition, lower benefit 

levels (potentially partially attributable to applying the guarantee maximum 

to the plan benefits of insolvent plans) or a combination of these and other 

factors.

 Relatively similar costs per participant as other groups, which supports 

the idea that the plan expenses are reasonable, and the 

expenses/benefits paid metric is failing in this case. 

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Multiemployer Expenses Observations (cont.)

• The data supports the concept that there are economies of scale in 

plan operation (as plan size increases, the AE ratios decline).

• Plan size appears to have a strong alignment with low AE. If there is a 

high concentration of large plans within a category (i.e. zone status, 

industry), the differences may be partially attributable to plan size.

• While the per participant expenses are similar between industries for 

ongoing plans, this may lead one to believe that there is little variation 

between industry groups, however:

 The difference between highest and lowest median AE is about 

$90 per participant, and 

 The highest median AE is about 31 percent larger than the lowest 

median AE. 

• AE costs have remained similar between the updates of this report.

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Notes and Methodology
Notes and Methodology

• Zone statuses are reviewed and adjusted for input error and are 

imputed (where possible) for years in which a zone status code 

was missing from the Form 5500, Schedule MB.

• The descriptive statistics exclude plans with no benefit payments 

during the plan year but include plans with relatively small benefit 

payments during the plan year.

• Industry codes reported on Form 5500 are reviewed and adjusted 

for input error.

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Notes and Methodology (cont.)

• For the purposes of this study, administrative expenses excludes 

investment expenses.

• Plan size is based on the total participants reported on the 

Schedule MB.

• For the purposes of this report, plans receiving PBGC financial 

assistance and terminated plans likely to result in a future claim are 

separated into distinct groups (Insolvent and Terminated, 

respectively).

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Notes and Methodology (cont.)

• The Pension Protection Act of 2006 (PPA) created zone statuses 

intended to provide a measure of a plan’s health based on current 

and projected funding levels. These zones statuses are:

 Critical status (Red Zone)

 Endangered status (Yellow Zone)

o Seriously Endangered (Orange Zone) – is a subset of Endangered 

status which is occasionally shown as a separate zone. For the 

purposes of this supplement, plans in this subgroup are included as 

Endangered. 

 Neither Critical nor Endangered status (Green Zone)

• The Multiemployer Pension Reform Act of 2014 (MPRA) created 

another zone status, which is a sub-class of Critical status:

 Critical & Declining (Deep Red or C&D)

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Elements of a Box & Whisker Graph

17 Source: SAS Institute