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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 [...]

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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 [...]

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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, [...]

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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 [...]

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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 [...]

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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 [...]

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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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11 02, 2016

North America’s Building Trades Unions Strongly Oppose PBGC Tax Increase on Working Families in President’s Budget

2016-02-11T23:24:15-08:00February 11th, 2016|Categories: PBGC|Tags: , |

The following statement was released today by North America's Building Trades Unions in reaction to a proposed increase in Pension Benefit Guaranty Corporation (PBGC) premiums for multiemployer plans as part of President Obama's FY 2017 budget proposal: "North America's Building Trades Unions are united in vigorous opposition to the PBGC tax increase being imposed on working families through President Obama's FY 2017 budget proposal. "The PBGC premium increase, if enacted, would result in a de facto five-fold tax increase on American workers, [...]

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1 10, 2015

PBGC projects extended solvency for multiemployer program

2015-10-01T23:34:58-07:00October 1st, 2015|Categories: Defined Benefit Plans|Tags: , , |

The PBGC’s multiemployer pension plan program got three more projected years of grace before running out of money, primarily due to increased premiums dictated by the Multiemployer Pension Reform Act of 2014, according to the agency’s FY 2014 Projections Report released Monday. The single-employer program projections show continued improvement, with solvency in the next 10 years. The report is an annual actuarial evaluation based on a range of estimates of the future status of insured pension plans and their [...]

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4 03, 2015

Pros and Cons of Rolling Your 401(k) Into Pension

2015-03-04T01:09:47-08:00March 4th, 2015|Categories: PBGC, Retirement|Tags: , , , |

A recent rule change has resulted in the Pension Benefit Guarantee Corporation(PBGC) guaranteeing 401(k) balances that are rolled into eligible pension plans. What this means is that if a company offers a pension plan 401(k) balances can be rolled over into the pension and the pension benefit that would result from the rolled over balance will be guaranteed by the PBGC just like the original pension benefit prior to the rollover. This will only impact folks whose employer offers both types of plans. [...]

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