21 01, 2021

Multiemployer pension plans could soon see relief

2021-01-21T13:55:48-08:00January 21st, 2021|Categories: Multiemployer Plans|Tags: |

Legislation to help struggling multiemployer pension funds is to be introduced Thursday in the House and could be headed for passage if bundled with a COVID-19 relief measure now before Congress. The proposal also calls for some funding relief for single employer plans through extended amortization periods and pension interest rate smoothing changes. The proposed Emergency Pension Plan Relief Act of 2021 is based on similar multiemployer pension reform legislation proposed in the last session of Congress as part [...]

16 12, 2020

Court Rules Pensions Can’t Exist in a State of Limbo

2020-12-16T09:03:15-08:00December 16th, 2020|Categories: Multiemployer Plans|Tags: |

The 11th U.S. Circuit Court of Appeals has ruled in a “most unusual case” that a company that went bankrupt and dissolved in the 1990s was still liable for its pension’s obligations 20 years later. The case centers on Chicago area-based Liberty Lighting Co. Inc, a unionized electrical supply manufacturing company and plan sponsor and administrator of the Liberty Lighting Co. Inc. Pension Plan for IBEW Employees. According to court documents, Liberty entered bankruptcy and surrendered its assets to [...]

16 12, 2020

Multiemployer pension reform not happening this year

2020-12-16T09:01:26-08:00December 16th, 2020|Categories: Multiemployer Plans|Tags: |

Multiemployer pension reform will not happen this year, Senate Republicans involved in negotiations said. In a joint statement, Finance Committee Chairman Chuck Grassley of Iowa, and Health, Education, Labor and Pensions Committee Chairman Lamar Alexander of Tennessee said late Monday that time ran out for having it included in end-of-year legislation before the 116th Congress adjourns. "While each side has agreed to make significant changes, we have yet to find an agreement that satisfies our respective principles and objectives [...]

13 05, 2020

Union Pension Partitions Included in Democrat’s 4th Relief Proposal

2020-05-13T15:38:17-07:00May 13th, 2020|Categories: Economy|Tags: , , , |

The Democratic majority in the U.S. House of Representatives has published a draft version of a fourth economic relief package in response to the coronavirus pandemic, dubbed the Health and Economic Recovery Omnibus Emergency Solutions Act or the “Heroes Act.” The wide-ranging legislation addresses a host of issues, from providing supplemental funding to the SNAP food security program to creating a special fund to support struggling fisheries. Notably, the entire Division D section of the legislation is dedicated to [...]

18 02, 2020

McClatchy files for Chapter 11 protection while PBGC talks continue

2020-02-18T14:26:36-08:00February 18th, 2020|Categories: Defined Benefit Plans|Tags: , , |

McClatchy Co. filed for voluntary Chapter 11 bankruptcy protection Thursday while it continues to seek support for a reorganization plan from key stakeholders, including the Pension Benefit Guaranty Corp. In its bankruptcy announcement, the company said the goal is to emerge from the process in the next few months after resolving legacy debt and pension obligations. "We are moving with speed and focus to benefit all our stakeholders and our communities," President and CEO Craig Forman said in the [...]

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, [...]

18 05, 2018

Some Union Retirees Could See Pension Benefits Cut 90%, PBGC Chief Warns

2018-05-18T17:20:49-07:00May 18th, 2018|Categories: Defined Benefit Plans|Tags: , |

Some union retirees could see their pension benefits cut by 90 percent, Pension Benefit Guaranty Corporation Director Tom Reeder warned today. A retiree getting $8,000 annually now could be cut to less than $1,000.That is a danger, cautioned Reeder, if Congress doesn’t act soon to shore up troubled multiemployer union pension plans and the PBGC’s insurance program that backs them up. A multiemployer pension plan is typically a workplace retirement savings program created by a union and companies in [...]

29 11, 2017

America’s pension crisis demands action by Congress

2017-11-29T11:49:04-08:00November 29th, 2017|Categories: PBGC|Tags: |

We are approaching a crisis that threatens the retirement future of millions of hardworking middle-class Americans. Today, Wednesday, this assessment will be confirmed in testimony by the director of the Pension Benefit Guaranty Corporation (PBGC), Tom Reeder, before the House Committee on Education and the Workforce. Director Reeder will detail the systemic issues threatening multiemployer pension plans and argue for raising PBGC premiums. While it is encouraging that Director Reeder and Congress recognize the need for immediate and decisive action to [...]

23 08, 2016

PPA in need of overhaul

2016-08-23T22:14:33-07:00August 23rd, 2016|Categories: Defined Benefit Plans|Tags: , |

The law of unintended consequences is once again in evidence 10 years after the passage of the Pension Protection Act of 2006. The PPA was passed to bolster the stability of defined benefit plans and the Pension Benefit Guaranty Corp. Instead, its greatest impact was on defined contribution plans, and it might have hastened the demise of the defined benefit plans it was designed to strengthen. The outcome is a reminder that legislators must not consider just the results [...]

8 08, 2016

Unforeseen consequences one legacy of the Pension Protection Act

2016-08-08T20:34:26-07:00August 8th, 2016|Categories: PBGC|Tags: , |

Like many pension-related laws, the Pension Protection Act that passed a decade ago was designed to address a crisis. At the time, underfunded pension plans were threatening the financial stability of the Pension Benefit Guaranty Corp. But while the act did help strengthen the federal agency, it also had the unintended effect of discouraging defined benefit plan sponsors and hastening the switch to defined contribution plans, observers say. “It was sold on the basis that we were going to [...]

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