Archive for the ‘Multiemployer Pensions’ Category

Breaking News: Two New MPRA Filings

Even with the probability  a bailout next year there are two mulitemployer plans that applied to cut benefits under MPRA including a first-time filer and a really big second-time filer.

From their latest 5500 filings:

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Worst Funded ‘Nonendagered’ Multiemployer Plans

The Pension Benefit Benefit Guaranty Corporation (PBGC) keeps track of troubled multiemployer plans and form 5500 filings have these MB actuarial certifications where the plans assign risk classifications to themselves. A few years ago we did a blog based on 2015 MB data and developed this spreadsheet. These were the four multiemployer plans with the largest unfunded liabilities based on 2015 data:

Downloading MB data does not yield plan name (possibly on purpose) but it is easy enough to find with the EIN. 36-6044243 is Central States which admits to being in risk category D (Critical and Declining) while the next three reported their status as N (Not Endangered or Critical). But are they really?

You decide:

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Lone In-Review MPRA Filing

In late July the Building Material Drivers Local 436 Pension Fund  out of Valley View, OH was the last multiemployer plan to file to cut benefits. According to the the MPRA website they are the only plan currently in review and, with a Biden-bailout looming, may be the last applicant ever under this program.

But, for now, they may have another problem that could deplete more of their dwindling assets.

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PBGC Data Tables – 2018

The Pension Benefit Guaranty Corporation (PBGC) has updated the 2018 Data Tables, which includes statistics for PBGC’s single-employer and multiemployer programs and for the private defined benefit pension system. This installment provides information about plan funding levels, demographics, and premiums, and multiemployer plan zone status, including information specific to critical and declining plans.

Good compendium drawn from 5500 and PBGC data with, for me, these highlights:

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MPRA Approval Vote Landslide

These days it would take longer to replace a Supreme Court justice.

On August 11, 2020 the Bricklayers and Allied Craftsmen Local No. 7 Pension Plan  got an approval letter to cut benefits pending participant approval through a voting process that involved locating participants and then sending out and tabulating ballots. Today the MPRA website posted a letter dated September 17, 2020 revealing the results of that vote. It was a landslide.

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PBGC Projections – 2019

Today the Pension Benefit Guaranty Corporation (PBGC) released its FY 2019 Projections Report, an annual actuarial evaluation forecasting the future financial condition of PBGC’s Single-Employer and Multiemployer Programs noting, among other things:

While last year’s report projected PBGC’s Multiemployer Program would become insolvent during FY 2025, this year’s projections show a very high likelihood of insolvency during FY 2026 and that insolvency is a near certainty by the end of FY 2027. This change is due primarily to the enactment of the Bipartisan American Miners Act of 2019, which provided federal funding for the United Mine Workers of America 1974 Pension Plan (“UnitedMine Workers Plan”).

Here are other things of note:

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MPRA (& Bailout) Update

The Pension Rights Center updated a list of multiemployer pension plans that have applied to the Treasury Department to cut benefits (copied below) that John Boehner and Joe Crowley of the Retirement Security Coalition picked up on to lobby for a bailout.

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Life After Withdrawal

It was eighteen months ago that the Laborers Local 265 Pension Plan out of Cincinnati, OH withdrew their application to cut benefits. Yesterday was the due date for filing their 5500 form for the plan year ended October 31, 2019 and they just got it in.

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Breaking News: MPRA Twofer Resolutions

This morning the MPRA website listed three multiemployer plan “in review”. This afternoon there is only the one that was submitted two weeks ago as the the Bricklayers and Allied Craftsmen Local No. 7 Pension Plan  got a short approval letter and the American Federation Of Musicians And Employers Pension Fund, which would have been the largest plan to cut benefits, got the longest denial letter to date, excerpted below.

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Treasury To Deny Musicians

The MPRA website lists the American Federation Of Musicians And Employers Pension Fund submitting on December 31, 2019 an application to cut benefits with the comment period ended on March 2, 2020.

Last month the Treasury Department announced it is looking for more comments even though the Musicians’ plan had by far the most comments of any submission.

So what’s going on? According to planadviser:

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