MPRA Benefit Cut Impact

Both the Intl Assoc. of Machinists Motor City Pension Fund and the Alaska Ironworkers Pension Plan were allowed in 2018 to cut benefits under the Multiemployer Pension Reform Act (MPRA) and both have June 30 plan year ends so we now have those full year 6/30/19 5500 filings to make comparisons.

It looks like the cuts were about 25% for Alaska Ironworkers and 40% for Motor City with all participant types reduced equally. Both plans saw their funded ratios rise but the recent market drop could have wiped that out leaving the plans back at pre-MPRA-cut levels.

Plan Name: Alaska Ironworkers Pension Plan
EIN/PN: 91-6123695/001
Total participants @ 6/30/19: 809 including:
Retirees: 528
Separated but entitled to benefits: 118
Still working: 163

Asset Value (Market) @ 7/1/18: $48,272,789
Value of liabilities using RPA rate (3.00%) @ 7/1/18: $96,823,176 including:
Retirees: $71,216,102
Separated but entitled to benefits: $15,981,243
Still working: $9,625,831

Funded ratio: 49.86%
Unfunded Liabilities as of 7/1/18: $48,550,387

Asset Value (Market) as of 6/30/19: $48,607,443
Contributions: $2,917,661
Payouts: $5,472,193
Expenses: $577,376

Compared to their prior year 5500:

Plan Name: Alaska Ironworkers Pension Plan
EIN/PN: 91-6123695/001
Total participants @ 6/30/18: 784 including:
Retirees: 548
Separated but entitled to benefits: 110
Still working: 126

Asset Value (Market) @ 7/1/17: $49,259,700
Value of liabilities using RPA rate (3.04%) @ 7/1/17: $123,821,275 including:
Retirees: $91,782,533
Separated but entitled to benefits: $20,190,152
Still working: $11,848,590

Funded ratio: 39.78%
Unfunded Liabilities as of 7/1/17: $74,561,575

Asset Value (Market) as of 6/30/18: $48,272,879
Contributions: $2,167,001
Payouts: $7,024,679
Expenses: $803,922

——————————————————————————————————————-

Plan Name: Intl Assoc. Of Machinists Motor City Pension Fund
EIN/PN: 38-6237143/001
Total participants @ 6/30/19: 985 including:
Retirees: 587
Separated but entitled to benefits: 298
Still working: 100

Asset Value (Market) @ 7/1/18: $48,668,133
Value of liabilities using RPA rate (3.00%) @ 7/1/18: $99,362,374 including:
Retirees: $71,925,471
Separated but entitled to benefits: $24,566,460
Still working: $2,870,433

Funded ratio: 48.98%
Unfunded Liabilities as of 7/1/18: $50,694,241

Asset Value (Market) as of 6/30/19: $59,126,154
Contributions: $12,343,384
Payouts: $5,560,669
Expenses: $504,828

Compared to their prior year 5500:

Plan Name: Intl Assoc. Of Machinists Motor City Pension Fund
EIN/PN: 38-6237143/001
Total participants @ 6/30/18: 1,033 including:
Retirees: 590
Separated but entitled to benefits: 305
Still working: 138

Asset Value (Market) @ 7/1/17: $50,276,287
Value of liabilities using RPA rate (3.04%) @ 7/1/17: $126,765,335 including:
Retirees: $92,782,427
Separated but entitled to benefits: $25,314,063
Still working: $8,668,845

Funded ratio: 39.66%
Unfunded Liabilities as of 7/1/17: $76,489,048

Asset Value (Market) as of 6/30/18: $48,668,133
Contributions: $2,240,860
Payouts: $7,170,955
Expenses: $554,731

One response to this post.

  1. Posted by Rex the Wonder Dog! 🐶🐶🐶🦴🦴🦴 on May 6, 2020 at 1:53 am

    Both plans saw their funded ratios rise but the recent market drop could have wiped that out leaving the plans back at pre-MPRA-cut levels.
    As a result of reasonable haircuts both funds had their funded level increase by an incredible 25% in a single year, 2018-2019. That is a tremendous improvement, even though they are still at just a 50% funded level.The latest Covid-19 will hit the funds hard, for sure, but if they had NOT made that one (1) year jump of 25% they would be most likely be depleted to zero (0) this year or next…

    Reply

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