In a letter, the Board of Trustees of the International Association of Machinists Motor City Pension Plan was notified that its application to reduce pension benefits under the Multiemployer Pension Reform Act of 2014 (MPRA) meets the requirements for approval.
However, the Treasury Department noted that the proposed benefit reductions will now be subject to a vote of participants and beneficiaries of the plan.
According to the Treasury’s website, five multiemployer pension plan’s applications have been denied, and only four have been approved, while one is still in review.
Some industry experts say the process of applying for benefit suspensions is proving more stringent than applicants and industry experts had anticipated.In January, a multiemployer plan approved for reductions under the MPRA was the first to obtain approval from members for the cuts.
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