Multiemployer Plan Primer and My Free Speech

The Joint Select Committee on the Solvency of Multiemployer Pension Plans held a public hearing today on an overview of the multiemployer pension system for which they released a document that provides a useful summary of present law relating to retirement plans generally and to multiemployer defined benefit plans in particular, as well as selected data relating to multiemployer defined benefit plans. Very little coverage of the hearing so far but it is becoming ever more likely that this process is setting up for a bailout after the mid-term election when Democrats get back in. And speaking of rigged government, tomorrow my free speech (and that of everyone in Union County) will be put to the test.

Excerpts from both below:

As of 2016, 1,375 defined benefit plans were insured under the PBGC multiemployer program with a total of about 10.5 million participants. The aggregate funded status of multiemployer plans as of 2014 was 49 percent, with total plan assets of about $468 billion and liabilities of about $963 billion. Among underfunded multiemployer plans, the 50 plans with the highest levels of underfunding accounted for about 54 percent of the total underfunding (about $307 billion in underfunding). As of September 30, 2017, PBGC’s multiemployer plan insurance program had total assets of about $2.3 billion and total liabilities of about $67 billion (including the present value of future nonrecoverable financial assistance provided to multiemployer plans), for a net negative position of about $65 billion, reflecting sharp increases in liabilities in recent years. (page 7)
Now that the first part of tax season is over tomorrow I turn to a little watchdogging.

3 responses to this post.

  1. Posted by dentss dunnigan on April 19, 2018 at 8:31 am

    Efforts to require state employees to increase their own contributions to their retirement are met with fierce resistance, even as they enjoy retirement plans far superior to those of the private sector workers whose taxes fund these pensions. This despite the fact that taxpayers are paying twice as much into public employee pension plans as a share of state revenue than just a decade ago.Murphy’s answer is to create jobs for other states …..Gerber moving headquarters out of New Jersey to Virginia..The company announced Monday that it will move to Rosslyn, Virginia in Arlington County.

    Virginia Gov. Ralph Northam said the move will create 150 new jobs in Virginia.

    Reply

  2. Posted by Stanley on April 19, 2018 at 11:15 am

    “…it is becoming ever more likely that this process is setting up for a bailout after the mid-term election when Democrats get back in.”

    I don’t consider that a done deal just yet. Assuming the economy doesn’t fall apart in the next 7 months, the Republicans may keep the House and pick up seats in the Senate. Surely, people aren’t pleased with the state of the Union, but I’m having a hard time thinking that there is wide spread support for bringing back Pelosi and Reid (Schumer). How much more bad news could there be about Trump? More seriously bad news about the former administration’s effort to derail Trump is a pretty fair bet And, I would argue that there are many who detest having one set of rules for some and another for the rest of us.
    An MEP bailout will probably lead to a public pension bailout and will set us up for the U.S. Government taking over all of the retirement plans and assets. Then some Chavez type can seize the golf courses and turn them into camps for the homeless.

    Reply

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