Updated May 2026 · DOL Form 5500 + PBGC
Critical Status Plans
Plans officially designated as being in critical or critical and declining status under federal law. May face benefit reductions.
4 plans currently designated in critical status under PPA, covering 245,500 active and retired participants with an average funding ratio of 22.1%. Critical-status designation triggers federally mandated contribution and benefit-restructuring rules.
Critical-status plans are formally recognized as having insufficient assets to meet projected obligations. 4 plans hold this designation under PBGC or state rules.
Plan status affects participant decisions: an active plan is still building benefits; a frozen plan is paying out what was already earned; a terminated or critical plan signals heightened benefit-modification risk.
What "Critical Status" Means in Practice
A plan in critical status — also called "red zone" status under PPA — is a multiemployer plan whose actuary has certified it as funded below specified thresholds and projected to deteriorate. Critical status triggers contribution and benefit-restructuring rules under federal law. Corporate single-employer plans have a related but distinct "at-risk" designation under ERISA Section 430(i) when funded below 80% (and stricter still below 70%).
The 4 listed plans report a combined $69.7B in unfunded liability — the dollar gap between plan assets and the present value of accrued benefit obligations at each plan's assumed discount rate. Status data comes from DOL EBSA Form 5500 datasets and PBGC publications.
Status designations can change between valuation cycles. A plan that emerges from critical status through a Rehabilitation Plan moves out of this list; a plan that freezes new accruals during the year shows up under Frozen at the next reporting cycle. Public plan status data — for plans not subject to ERISA — comes from the Public Plans Database compilation of each system's ACFR.
Plans Currently Listed
| # | Plan Name | Type | State | Participants | Funding Ratio | Unfunded Gap | Grade |
|---|---|---|---|---|---|---|---|
| 1 | Kentucky Employees Retirement System (KERS) State of Kentucky | public | KY | 142,000 | 20.4% | $28.1B | F |
| 2 | Chicago Municipal Employees Annuity & Benefit Fund City of Chicago | public | IL | 59,000 | 25.3% | $18.0B | F |
| 3 | Chicago Policemen's Annuity & Benefit Fund City of Chicago | public | IL | 31,000 | 23.3% | $15.8B | F |
| 4 | Chicago Firefighters Annuity & Benefit Fund City of Chicago | public | IL | 13,500 | 19.5% | $7.8B | F |
How Status Is Determined
For ERISA-covered private and multiemployer plans, status flags come directly from the plan's Form 5500 filing, with PBGC publishing supplemental data for plans in at-risk or critical status. For terminated plans, PBGC publishes a list of trusteed plans separately. For public plans, status comes from each system's ACFR. The Pension Health Score on this page combines funding ratio (50%), 3-year funding trend (30%), and PBGC risk (20%) — see the methodology.
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Frequently Asked Questions
What does "Critical Status" status mean?
Plans officially designated as being in critical or critical and declining status under federal law. May face benefit reductions. A plan in critical status — also called "red zone" status under PPA — is a multiemployer plan whose actuary has certified it as funded below specified thresholds and projected to deteriorate. Critical status triggers contribution and benefit-restructuring rules under federal law. Corporate single-employer plans have a related but distinct "at-risk" designation under ERISA Section 430(i) when funded below 80% (and stricter still below 70%).
How many critical status plans are there?
PensionRisk currently tracks 4 critical status plans, with the top 4 listed below by participant count and unfunded liability.
What happens to my benefit if my plan is critical status?
Critical-status multiemployer plans must adopt a Rehabilitation Plan that may include contribution increases, reductions in adjustable benefits, and other restructuring measures under PPA. Participants in pay status are generally protected from reductions to their core monthly benefit; future accruals and ancillary benefits may be reduced.
Where does this status data come from?
Plan status designations come from DOL EBSA Form 5500 filings (Schedule SB or MB), PBGC publications for trusteed terminated plans and the agency's at-risk designations, and the Boston College Public Plans Database for state and municipal plans. The current dataset reflects filings available as of May 2026.
Is this investment advice?
No. PensionRisk is a data and education site. We explain plan status designations and what they mean for participants, but we do not recommend specific investment actions, predict whether plans will recover, or advise on lump-sum-vs-annuity decisions. For plan-specific concerns, review your most recent Annual Funding Notice and consult a fee-only fiduciary advisor.
4 plans currently designated in critical status under PPA, covering 245,500 active and retired participants with an average funding ratio of 22.1%. Critical-status designation triggers federally mandated contribution and benefit-restructuring rules.