26 07, 2018

Dire Testimony from Stakeholders on State of Multiemployer Pensions

2018-07-26T11:36:11-07:00July 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

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

2018-07-13T15:33:44-07:00June 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”

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

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

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

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

2018-04-26T09:50:51-07:00April 26th, 2018|Categories: Multiemployer Plans|Tags: , |

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

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

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. [...]

2 09, 2016

What Happens to Multiemployer Pension Plan Reform Now?

2016-09-02T21:57:26-07:00September 2nd, 2016|Categories: Multiemployer Plans|Tags: |

Congress passed the Multiemployer Pension Plan Reform Act of 2014 (MPRA) in an effort to aid the many failing multiemployer pension plans. At the time of its passage, the MPRA was regarded as the most significant legislation in decades. Importantly, the MPRA permits trustees to reduce the pension benefits of plan participants, including benefits for some retirees who are already in pay-status, if the fund is projected to become insolvent within a specified number of years. However, the MPRA [...]

4 08, 2016

Multiemployer Plans Are Predominantly in Green Zone

2016-08-04T22:26:06-07:00August 4th, 2016|Categories: Multiemployer Plans|Tags: , |

A strong majority of U.S. multiemployer retirement plans stand in the Pension Protection Act-defined “green zone,” according to Segal Consulting’s new survey of Plans’ Zone Status, meaning their financial outlook is healthy and they stand a good chance of paying out all benefits promised to participants and beneficiaries. According to Segal Consulting, of the calendar-year plans in the survey, or those with plan years that begin on January 1, two-thirds (66%) are in the green zone. The zone system [...]

3 03, 2016

What Congress can do to help people in multiemployer pension plans

2016-03-03T18:50:55-08:00March 3rd, 2016|Categories: Multiemployer Plans|Tags: |

Mr. Chairman, Senator Wyden, and members of the Committee, I am honored and grateful for the opportunity to speak about the sad choices facing some distressed multiemployer pension plans, and about the steps that Congress might take in response, some of which could make life better for the 1,000,000+ people in those plans, and some of which could make it worse.  […]

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