Breaking News: Third Union Plan Gets MPRA Letter

On September 25, 2015 the Central States Pension Plan applied to the Treasury Department to reduce benefits under the Multiemployer Pension Reform Act of 2014 (MPRA). On May 6, 2016 that application was denied.

On March 15, 2016 the Road Carriers Local 707 Pension Fund also applied under MPRA.  On June 24, 2016 that application was denied.

On March 26, 2016 the Ironworkers Local 16 Pension Plan applied too.  Today they got their letter.

Denied…..specifically on account of:

  1. using outdated mortality table (GAM83)
  2. unreasonably assuming that after many years of decreasing contribution base units (CBUs), “including a significant acceleration in the rate of such decreases in the last three years, CBUs will be 275,000 for 2016 and will remain unchanged at that level through 2046.”

Pertinent data from latest 5500 filing:

Plan Name: Ironworkers Local 16 Pension Plan
EIN/PN: 52-6148924/001
Total participants @ 12/31/15: 1,128 including:
Retirees: 637
Separated but entitled to benefits: 153
Still working: 338

Asset Value (Market) @ 1/1/15: $86,225,376
Value of liabilities using RPA rate (3.51%) @ 1/1/15: $194,275,554 including:
Retirees: $150,731,881
Separated but entitled to benefits: $16,947,084
Still working: $26,596,589

Funded ratio: 44.38%
Unfunded Liabilities as of 1/1/15: $108,050,178

Asset Value (Market) as of 12/31/15: $81,295,236
Contributions: $3,829,054
Payouts: $11,662,166
Expenses: $936,192

5 responses to this post.

  1. Posted by now retired Pat on November 4, 2016 at 12:53 am

    “The probability the plan will avoid bankruptcy if the suspension and changes in benefits occur is 50.4%” How can these guys realistically expect to be treated with respect? They cooked the actuarial numbers just enough to get over the 50% Likelihood threshold! It is understandable why the petition was denied!

    Reply

  2. mortality table fraud marked the beginning of fraudulent defined benefits. using mortality tables from life insurance companies, back in the day, the only people getting life insurance were sick. they were dying around age 67.

    to make db plans look viable, they apply this unrealistic mortality table (showing how sick people die, not the entire population) model allowed them to fake viability, when in reality, db plans have always been unfunded. they are all pay as you go.

    mortality table fraud was one of the ways they started defined benefits. they have always been a fraud and they always will be.

    dc plans are the only legal way to handle retirement.

    Reply

  3. Posted by Anonymous on November 4, 2016 at 12:26 pm

    I’ll save you the keystrokes…..

    TB on November 3, 2016 at 12:13 pm

    More and more people are beginning to realize that Defined Benefit plans like public pensions are not sustainable, including the private sector which has more or less done away with them. Here is my solution to this looming crisis that is only going to get worse without any correction of course:

    https://drive.google.com/file/d/0B90sU3A85q46OE9BZHJFSWEzbGM/view?usp=drivesdk

    Please help spread the word…

    Anonymous on November 3, 2016 at 9:21 pm

    No one should assume their employer will do right by them, especially if it doesn’t benefit them in some way.

    IF the Fed is going to get involved in private and/or governmental DBP then a (very hard to do) value conversion to applicable Fed DBP must be adopted by ALL participants. This include SS applicability.

    Reply

    Reply

  4. Posted by Anonymous on November 4, 2016 at 4:48 pm

    Why do these plans keep applying and getting denied? Are they about to go insolvent without reductions or not? The numbers don’t make any sense to me. Will they go belly up in the next year or not?

    Reply

  5. […] Ironworkers Local 16 Pension Fund […]

    Reply

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