UMWA 5500 Update – 6/30/19

Last year retired coal miners traveled to Washington, D.C. to lobby lawmakers to put in place a federal safety net in case the United Mine Workers of America (UMWA) pension fund fails. Coal plant closures and company bankruptcies have sent the pension fund to the edge of collapse. In October, 2019 Murray Energy, the last major company propping up the dwindling fund, also went bankrupt and the prediction was insolvency in FY23.

On April 15, 2020 (eschewing the three month Covid filing extension) the plan submitted their 5500 form for the year ended 6/30/19 confirming the timeline.

Plan Name: United Mine Workers of America 1974 Pension Plan
EIN/PN: 52-1050282/002
Total participants @ 6/30/19: 90,579 including:
Retirees: 81,561
Separated but entitled to benefits: 6,199
Still working: 2,819

Asset Value (Market) @ 7/1/18: $2,376,91,000
Value of liabilities using RPA rate (3.00%) @ 7/1/18: $9,333,824,147 including:
Retirees: $8,338,818,302
Separated but entitled to benefits: $680,025,888
Still working: $314,979,957

Funded ratio: 25.47%
Unfunded Liabilities as of 7/1/18: $6,956,913,147

Asset Value (Market) as of 6/30/19: $2,208,975,638
Contributions H-Employers: $18,987,832
Contributions H – Others: $224,824,451
Contributions MB: $158,033,982
Payouts: $565,669,207
Expenses: $31,482,756

7 responses to this post.

  1. Posted by Tough Love on May 2, 2020 at 12:13 am

    Off Topic

    The best statement of the day ………… on the Administration’s COVID-19 response:

    “This week, Trump has embellished, exaggerated and lied, then lied about his lies and spread another layer of lies on top of the old ones”

    Reply

  2. Posted by skip3house on May 2, 2020 at 5:58 am

    Is there a good reason to NOT often/monthly tell all the ‘funded ratio’,(explain meaning), and state that is % of pension to be expected……until pension is better funded?

    Reply

    • There are annual notices that need to be provided:
      https://www.pbgc.gov/prac/multiemployer/funding-and-other-notices

      The problems with those are that they can use the phony funded ratios (using the interest rates actuaries get to choose and the not much lower RPA rates) and it is unclear what
      the participants are supposed to do when they do get the funded ratio information.

      Reply

      • Posted by Rex the Wonder Dog! 🐶🐶🐶🦴🦴🦴 on May 6, 2020 at 2:10 am


        The problems with those are that they can use the phony funded ratios (using the interest rates actuaries get to choose and the not much lower RPA rates)
        I thought the PBGC made private pension funds use a T-Bill rate?

        Reply

        • Posted by Tough Love on May 6, 2020 at 10:54 am

          That applies only to Single-employer DB pensions, not MEPs.

          P.S. It’s not a T-bill rate, but much lower than what MEPs and Public Sector Plans use in their valuations.

          Reply

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