The early financial assistance from PBGC, together with benefit reductions that are required as a condition for receiving assistance, will help a Pennsylvania union pension plan avoid insolvency.
Tag: multiemployer pension plan
The Pension Analytics Group says the only solution is to reduce benefits across the board, or many of these plans will become insolvent and participants will end up with only pennies on the dollar of the benefits they have accrued.
The assistance, along with benefit reductions, will help the plan avoid insolvency.
The Butch Lewis Act offers a way to preserve union retiree pension benefits through an emergency loan program funded with proceeds from Treasury bonds; the legislation this week received a 10-year CBO cost assessment of $34 billion.
Passionate testimony from a Teamster to the Joint Select Committee on the Solvency of Multiemployer Pension Plans appeared to outshine that from three financial experts.
Commenting on the decision, Segal Consulting says it is “consistent with every other decision handed down in similar cases except for one,” the Southern District of New York Court’s decision in The New York Times Company v. Newspaper and Mail Deliverers’-Publishers’ Pension Fund, which is being appealed.
Tens of thousands of employers in the U.S. contribute to multiemployer pension funds that are in critical and declining status, collectively facing an unfunded liability well above $100 billion; Society of Actuary researchers warn of potential ripple effects should many of their plans fail at once.
The employer sought to carve out new hires from a critical-status multiemployer pension fund and instead direct their contributions into a 401(k) plan—but both a district court and appellate court have called foul.
U.S. Senators Orrin Hatch and Sherrod Brown are seeking public and industry input on ways to improve the solvency of multiemployer pension plans and the Pension Benefit Guarantee Corporation.
A federal district court has ruled a multiemployer pension fund's use of the "Segal Blend" rate when assessing a member's withdrawal liability was, in this instance, improper.
The 11th U.S. Circuit Court of Appeals ultimately determined there is no explicit restriction saying a critical-status multiemployer plan’s board of trustees cannot charge withdrawing employers for their share of the plan’s accumulated funding deficiency.