Breaking News: Benefit Cuts for Composition Roofers

Appearing today on the MPRA website is the approval letter to cut benefits for participants in the Composition Roofers Local 42 Pension Plan out of Cincinnati, OH.

From their latest 5500:

Plan Name: Composition Roofers Local 42 Pension Plan
EIN/PN: 31-6127285/001
Total participants @ 12/31/18: 488 including:
Retirees: 239
Separated but entitled to benefits: 74
Still working: 175

Asset Value (Market) @ 1/1/18: $26,053,645
Value of liabilities using RPA rate (2.98%) @ 1/1/18: $79,060,791 including:
Retirees: $52,164,415
Separated but entitled to benefits: $9,951,709
Still working: $16,944,667

Funded ratio: 32.95%
Unfunded Liabilities as of 1/1/18: $53,007,146

Asset Value (Market) as of 12/31/18: $22,362,057
Contributions: $1,133,418
Payouts: $3,449,227
Expenses: $244,571


13 responses to this post.

  1. Posted by MJ on February 9, 2020 at 8:03 am

    Roofers get pensions too? Who would have thunk it:) I thought they were all mob businesses for cleaning money


  2. Posted by Eric on February 10, 2020 at 7:32 am

    The danger about investing in either New Jersey or Illinois bonds is that the debt is already junk status. For political reasons, the rating agencies always indicate that New Jersey and Illinois are investment grade when in fact they are not.
    If the rating agencies performed their jobs, bond funds, that only invest in investment grade securities, instead of “junk bonds” or high yield bonds, would have to sell their New Jersey and Illinois holdings according to their prospectuses.
    I could not read the second link you provided since the page was no longer available.
    Remember the sterling rating that Mutual Benefit received based in Newark, New Jersey until it went bankrupt due to its investments in Florida real estate? It was as though a “switch” were flipped, and instantaneously the ranking became an F.
    “Investors” beware.


  3. Posted by Eric on February 10, 2020 at 11:25 pm

    If a New Jersey bond fund were equities, instead of debt instruments, the quality of the portfolio would be packed with the likes of Enron, Global Crossing, and Lucent Technologies. I would not be sleeping too well at night.
    I “bailed out” of New Jersey bonds many, many years ago.


    • Posted by Tough Love on February 10, 2020 at 11:38 pm

      Just wait until the Teachers pension Pension Plan fails ……… either benefit reductions or HUGE increases in Taxes for a Pay-go structure.

      Of course they could postpone that for a while by eliminating the Teacher’s retiree healthcare benefits.


  4. Posted by Eric on February 11, 2020 at 7:52 am

    Tough Love:
    Maybe the plans will not fail. Everyone seems to be counting on the Federal Reserve to continue to print trillions of U.S. dollars “out of thin air” to keep the equity markets levitated. The only problem is that most people do not have defined benefit plans, and need the U.S. dollar to maintain some form of purchasing power, otherwise, there may be a revolution when necessities of life can no longer be afforded. Even public workers may end up with plans that have no purchasing power as well since they are denominated in U.S. dollars.
    It is a tough situation with no easy solutions.


  5. Posted by TOM on February 11, 2020 at 9:47 am



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