24 07, 2019

Senate reintroduces multiemployer pension reform bill

2019-07-24T15:18:09-08:00July 24th, 2019|Categories: Multiemployer Plans|Tags: , |

A multiemployer pension reform package that would create a federal loan program for struggling plans was reintroduced Wednesday in the Senate, as the House prepared to vote on similar legislation. The 27 Senate sponsors include former members of a now-disbanded bipartisan House and Senate Joint Select Committee on multiemployer pensions Sherrod Brown, D-Ohio, Tina Smith, D-Minn., Joe Manchin, D-W. Va., and Senate Minority Leader Charles Schumer, D-N.Y. Approval of similar legislation in the Democratically controlled House, known as the [...]

11 07, 2019

Multiemployer Pension Fix Continues to Work its Way Through the House

2019-07-11T12:17:17-08:00July 11th, 2019|Categories: Multiemployer Plans|Tags: |

The so-called Butch Lewis Act to address funding problems facing multiemployer pension plans continues to work its way through the legislative labyrinth, with a second House committee approving the legislation in recent weeks. In what at times was a hotly debated markup session, on July 10 the House Ways & Means Committee approved by a party-line vote an amended version of the Rehabilitation for Multiemployer Pensions Act of 2019 (H.R. 397). The House Education & Labor Committee approved a [...]

12 06, 2019

Multiemployer pension reform bill approved by House Education and Labor Committee

2019-06-12T06:00:34-08:00June 12th, 2019|Categories: Multiemployer Plans|Tags: , , |

Bipartisan multiemployer pension reform legislation that would create a federal loan program for struggling plans was approved Tuesday in a 26-18 vote by the House Education and Labor Committee. The bill introduced by House Ways and Means Committee Chairman Richard E. Neal, D-Mass., in January has 168 co-sponsors, including eight Republicans. Mr. Neal said his committee will be voting on the bill soon, with a sense of urgency for an estimated 10% of multiemployer pension plans covering 1.5 million [...]

5 06, 2019

Pensionomics 2018: Measuring the Economic Impact of Multiemployer DB Pension Expenditures

2019-06-05T10:22:54-08:00June 5th, 2019|Categories: Multiemployer Plans|Tags: |

This study analyzes data on specific private sector pension plans (referred to as “multiemployer plans”) to assess the overall national economic impact of benefits paid by these plans to retirees. We estimate the employment, output, value added, and tax impacts of pension benefit expenditures from multiemployer plans at the national level, and find that the economic gains attributable to private sector multiemployer DB pension expenditures are considerable. In 2016, $41.8 billion in pension benefits were paid to 3.5 million [...]

28 12, 2018

Some unions turning to variable benefit pension plan model

2018-12-28T08:22:02-08:00December 28th, 2018|Categories: Multiemployer Plans|Tags: |

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

2018-12-04T16:27:12-08:00December 4th, 2018|Categories: Multiemployer Plans|Tags: |

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

2018-10-15T14:40:45-08:00October 15th, 2018|Categories: Multiemployer Plans|Tags: |

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

2018-07-26T11:36:11-08:00July 26th, 2018|Categories: Multiemployer Plans|Tags: |

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

2018-07-13T15:35:02-08:00July 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

2018-07-13T15:33:44-08:00June 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 [...]

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