Multiemployer Plans

28 12, 2018

Some unions turning to variable benefit pension plan model
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Some unions turning to variable benefit pension plan model

Multiemployer Plans

Some unions turning to variable benefit pension plan model

CORPaTH2018-12-28T08:22:02-07:00December 28th, 2018|Categories: Multiemployer Plans|Tags: variable benefit pension plan model|

As a special committee in Congress continues to grapple with ideas to help struggling multiemployer pension funds and to keep others from the same fate, an increasing number of trustees are forging ahead with shared-risk or variable benefit plan designs that can better match benefits to market returns. "If Congress does something creative with pension reform, that's great, but we weren't going to wait around for it. We wanted to take the initiative just in case something isn't worked [...]

4 12, 2018

Missing Deadline, Joint Committee Continues Work on Multiemployer Pension Crisis
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Missing Deadline, Joint Committee Continues Work on Multiemployer Pension Crisis

Multiemployer Plans

Missing Deadline, Joint Committee Continues Work on Multiemployer Pension Crisis

CORPaTH2018-12-04T16:27:12-07:00December 4th, 2018|Categories: Multiemployer Plans|Tags: Joint Select Committee on Solvency of Multiemployer Pension Plans|

When the bipartisan Joint Select Committee on the Solvency of Multiemployer Pension Plans was created early this year, it was tasked with coming up with a solution by November 30. Senators and co-chairmen Orrin Hatch, R-Utah, and Sherrod Brown, D-Ohio, said they missed this deadline, but that the committee is making strong progress and will continue working on a package of potential solutions during the lame-duck session of the 115th Congress. Anyone who has listened in on the committee’s various [...]

15 10, 2018

Critical and declining multiemployer plans need help from Congress, Segal Consulting says
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Critical and declining multiemployer plans need help from Congress, Segal Consulting says

Multiemployer Plans

Critical and declining multiemployer plans need help from Congress, Segal Consulting says

CORPaTH2018-10-15T14:40:45-07:00October 15th, 2018|Categories: Multiemployer Plans|Tags: congress|

Critical and declining multiemployer pension plans are not likely to recover without help from Congress, a study released Tuesday by Segal Consulting concluded. Critical and declining plans classified as being in the red zone are projected to be insolvent, generally within the next 20 years, putting participants, including retirees, at risk of reduced benefits. Segal Consulting analyzed red-zone multiemployer plans over the past 10 years, and found that for plans that were in the red zone in 2010, there [...]

26 07, 2018

Dire Testimony from Stakeholders on State of Multiemployer Pensions
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Dire Testimony from Stakeholders on State of Multiemployer Pensions

Multiemployer Plans

Dire Testimony from Stakeholders on State of Multiemployer Pensions

CORPaTH2018-07-26T11:36:11-07:00July 26th, 2018|Categories: Multiemployer Plans|Tags: Joint Select Committee on the Solvency of Multiemployer Pension Plans|

The Joint Select Committee on the Solvency of Multiemployer Pension Plans held its fifth public hearing this morning to gather testimony on the dire financial situation facing the U.S. multiemployer pension system. Opening the hearing, Senators and co-chairmen Orrin Hatch, R-Utah, and Sherrod Brown, D-Ohio, both spoke to the fact that millions of Americans across the country depend on multiemployer pension plans for their retirement, and, if nothing changes, a growing number of workers face severe financial risks. They [...]

9 07, 2018

The Multiemployer Pension Plan Crisis: Segal’s Observations
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The Multiemployer Pension Plan Crisis: Segal’s Observations

Multiemployer Plans

The Multiemployer Pension Plan Crisis: Segal’s Observations

CORPaTH2018-07-13T15:35:02-07:00July 9th, 2018|Categories: Multiemployer Plans|

Currently, around 130 multiemployer pension plans are projected to become insolvent in the next 20 years. Some of these plans are projected to run out of money within the next 10 years. As these plans become insolvent and are taken over by the Pension Benefit Guaranty Corporation (PBGC); the PBGC, in turn, is then projected to become insolvent around 2025, after which it will not be able to pay guaranteed benefits for insolvent multiemployer plans. If these events occur, more [...]

25 06, 2018

The Impact of Alternative Discount Rates on Multiemployer Pension Plan Funding
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The Impact of Alternative Discount Rates on Multiemployer Pension Plan Funding

Multiemployer Plans

The Impact of Alternative Discount Rates on Multiemployer Pension Plan Funding

CORPaTH2018-07-13T15:33:44-07:00June 25th, 2018|Categories: Multiemployer Plans|

The National Coordinating Committee for Multiemployer Plans sent the following letter to Congress on June 25, 2018. Click here to view the Horizons Actuarial Services Report. Dear Ladies and Gentlemen: On May 24, 2018 the National Coordinating Committee for Multiemployer Plans (NCCMP) provided the Joint Select Committee on Solvency of Multiemployer Pension Plans with a submission that provided detailed answers to each of the questions that the Committee Members asked during April 18, 2018 hearing. In it, we expressed [...]

1 06, 2018

Current Survey Shows a Majority of Multiemployer Pension Plans Are “Green”
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Current Survey Shows a Majority of Multiemployer Pension Plans Are “Green”

Multiemployer Plans

Current Survey Shows a Majority of Multiemployer Pension Plans Are “Green”

CORPaTH2018-06-01T16:28:13-07:00June 1st, 2018|Categories: Multiemployer Plans|Tags: segal consulting|

Segal Consulting’s latest Survey of Plans’ Zone Status presents the most recent data available for multiemployer pension clients that have January 1 through July 1 plan years and filed zone certifications by September 20, 2017. We found: Most calendar-year multiemployer plans are in the green zone. Relatively few plans are in critical and declining status. Roughly two-thirds of plans in the survey have a Pension Protection Act of 2006 (PPA’06) funded percentage above 80 percent. Nearly 30 percent of plans in [...]

22 05, 2018

Multiemployer Pension Funding a Big Challenge for PBGC, Wider Economy
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Multiemployer Pension Funding a Big Challenge for PBGC, Wider Economy

Multiemployer Plans

Multiemployer Pension Funding a Big Challenge for PBGC, Wider Economy

CORPaTH2018-05-22T17:05:03-07:00May 22nd, 2018|Categories: Multiemployer Plans|Tags: PBGC|

A new report published by the Society of Actuaries (SOA) throws into sharp detail the challenges faced by the U.S. multiemployer pension system. Speaking about the report, Lisa Schilling, retirement research actuary for the SOA, quickly pointed out that there are many multiemployer pensions that are healthy and more or less entirely financially fit. In fact, there are more than 1,200 multiemployer pension plans in the United States today, covering about 10 million participants, including roughly 4 million retirees. However, [...]

26 04, 2018

Hearing Witnesses Lay Out How Multiemployer Pensions Got Where They Are
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Hearing Witnesses Lay Out How Multiemployer Pensions Got Where They Are

Multiemployer Plans

Hearing Witnesses Lay Out How Multiemployer Pensions Got Where They Are

CORPaTH2018-04-26T09:50:51-07:00April 26th, 2018|Categories: Multiemployer Plans|Tags: Employee Retirement Income Security Act, Joint Select Committee on Solvency of Multiemployer Pension Plans|

Witnesses for the newly formed Joint Select Committee on Solvency of Multiemployer Pension Plans spelled out for legislators the history of multiemployer pensions and how they got into the crisis they are in today. In his testimony, Thomas A. Barthold, chief of staff of the Joint Committee on Taxation, offered a very detailed history of the multiemployer pension plan system both before and after enactment of the Employee Retirement Income Security Act (ERISA). He identified four issues contributing to [...]

23 10, 2017

Multiemployer pension plans nearing healthiest funding since market collapse of 2008
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Multiemployer pension plans nearing healthiest funding since market collapse of 2008

Multiemployer Plans

Multiemployer pension plans nearing healthiest funding since market collapse of 2008

CORPaTH2017-10-23T18:50:28-07:00October 23rd, 2017|Categories: Multiemployer Plans|Tags: Pension Health|

Milliman has released the results of its Fall 2017 Multiemployer Pension Funding Study, which analyzes the funded status of all multiemployer pension plans. As of June 30, 2017, these plans are nearing the healthiest they’ve been since U.S. financial markets collapsed in 2008. In the first six months of 2017, the aggregate funding percentage for all multiemployer pensions climbed from 77% to 81%, reducing the system’s shortfall by $21 billion – an improvement driven largely by favorable investment returns. [...]