Operating Engineers Local 324 Pension Fund
multiemployer plan · IUOE Local 324 · Novi, MI
Operating Engineers Local 324 Pension Fund is overfunded: 105% funding ratio — assets ($24.8B) exceed actuarial liabilities ($23.6B). Overfunded plans are unusual in U.S. pension data; most either took advantage of strong investment returns over multiple years or carry the surplus from a closed/frozen plan.
Operating Engineers Local 324 Pension Fund is a multi-employer pension plan sponsored by IUOE Local 324 — a collectively-bargained plan covering workers across multiple employers in the same industry or union. Multi-employer plans are PBGC-insured but under a different (and historically less-funded) program than single-employer plans. The plan remains active — accruing new benefits for current employees and accepting new participants. Among private-sector single-employer plans, the active status is increasingly rare as employers freeze accruals while continuing to fund existing obligations; public-sector plans are more often still actively accruing.
Operating Engineers Local 324 Pension Fund is a large pension plan with $24.8B in assets and 230,039 participants (104,686 active, 99,711 retired). Large plans usually have professional investment management and complex actuarial structures. The participant mix runs roughly even between 104,686 active workers and 99,711 retirees — a balanced demographic profile that gives the plan time to compound investment returns before payouts dominate cash flow. Annual cash flows: $120M in sponsor contributions versus $150M in benefit payments. Investment performance over the most recent year ran 5.7%, against the plan's assumed long-term return of 7.0%.
On PBGC risk classification: low — the plan's funded status and solvency trajectory are favorable enough that PBGC intervention is not on the near-term horizon. Multi-employer plans like Operating Engineers Local 324 Pension Fund have PBGC backing under a separate (and historically lower-funded) guarantee program. The 2021 American Rescue Plan provided substantial federal support to the multi-employer system, but long-term solvency varies plan-by-plan.
Source: DOL EFAST2 Form 5500 filings and Boston College CRR Public Plans Database.
Funding History
What This Means for You
Operating Engineers Local 324 Pension Fund is in excellent financial health at 105% funded. This means for every dollar the plan owes in future benefits, it has 105 cents in assets to cover it. This plan is also covered by the PBGC, providing an additional safety net. Participants in this plan have relatively low risk of benefit reductions.
Year-by-Year Funding
| Year | Assets | Liabilities | Funding Ratio | Contributions |
|---|---|---|---|---|
| 2023 | $24.8B | $23.6B | 105.1% | $120.0M |
| 2022 | $24.1B | $36.0B | 67.0% | $116.4M |
| 2021 | $23.4B | $33.4B | 70.0% | $112.8M |
| 2020 | $22.6B | $35.3B | 64.0% | $109.2M |
| 2019 | $21.9B | $33.1B | 66.0% | $105.6M |
Frequently Asked Questions
Operating Engineers Local 324 Pension Fund is 105% funded, meaning it has 105 cents in assets for every dollar in future benefit obligations. This is considered healthy by actuarial standards.
Operating Engineers Local 324 Pension Fund has 230,039 total participants, including 104,686 active employees and 99,711 retirees currently receiving benefits.
Yes, Operating Engineers Local 324 Pension Fund is covered by the Pension Benefit Guaranty Corporation (PBGC), which provides a backstop if the plan cannot pay benefits. The PBGC risk level is currently "low."
The Pension Health Score (0-100, A-F) measures a pension plan's financial strength based on funding ratio (50%), funding trend over 3 years (30%), and PBGC risk level (20%). Higher scores indicate more secure retirement benefits.
Pension Health Score is calculated from funding ratio, 3-year funding trend, and PBGC risk classification.