Archive for the ‘Multiemployer Pensions’ Category

Lightening Loads

When explaining to someone why the money you promised to give them will not be paid what better way than through a cartoon? Nothing, according to the administrators of the Local 807 Labor-Management Pension Plan who filed to cut benefits recently and explained it this way to plan members:
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The truck driver appears contented but, as for his haul:
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Breaking News: New MPRA Filing

Appearing this afternoon on the MPRA website, Local 807 Labor-Management Pension Plan out of Long Island City, NY re-filed to cut benefits. The plan first filed in July, 2018 and withdrew that application in February, 2019.

From their latest 5500 filing:

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Musician Chops (3): Proposed Ballot

To understand the application to cut benefits under the American Federation of Musicians and Employers’ Pension Fund out of New York, NY the best place to start may be to see what the participants will see when PBGC gives its approval and they have to ‘consent’.

The New York Times reported that

more than half the plan’s participants would see no reduction in their benefits; about 45 percent would see their retirement benefits reduced by up to 19 percent of what they have been promised; and a little under 2 percent would have their benefits cut by 20 to 40 percent. Benefits would not be cut for retirees over 80, and cuts would be reduced for those over 75.

The proposed ballot does not get into details but does provide some background and perspective:

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Musician Chops (2): Employers

The application to cut benefits under the American Federation of Musicians and Employers’ Pension Fund out of New York, NY is now on the MPRA website and even though it consists of 1,381 pages this might be a good one to read all the way through.

Hence this new blog series which we kick off with identifying who the Employers* are in this multiemployer plan and what they contract to contribute as a percentage of member salaries which, for reasons of negotiation, is usually a closely guarded secret.

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Musician Chops (1)

When the American Federation of Musicians and Employers’ Pension Fund out of New York, NY cuts benefits under MPRA effective as of January 1, 2021 we may finally see some pushback from a constituency with a megaphone.

The filing is not yet on the MPRA website but the 5500 for the year ended March 31, 2019 was submitted today and here is data from that filing:

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Breaking News: First Facilitated Merger Under MPRA

The Pension Benefit Guaranty Corporation (PBGC) today announced its first approved facilitated merger under the Multiemployer Pension Reform Act of 2014 (MPRA). Under this authority, PBGC may provide financial assistance to help merge two multiemployer plans in order to extend the solvency of a financially distressed plan. To help facilitate the merger of the Laborers International Union of North America 1000 Pension Fund (Local 1000 Plan) with the Laborers Local 235 Pension Fund (Local 235 Plan), PBGC will provide three annual installments of $8.9 million to the merged plan beginning this month.

Per the PBGC Q&A:

The merger will help to protect the pension benefits of over 400 participants of the Laborers International Union of North America Local 1000 Pension Fund. Without the merger, the Local 1000 Plan was projected to become insolvent in 2026. The merger will not affect participants and beneficiaries of the Laborers Local 235 Pension Fund.

From their latest 5500 filings:

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Bricklayers 7 Refile

Perhaps this means no bailout for multiemployer plans as we are starting to see filings under MPRA for benefit cuts picking up.

The American Federation of Musicians and Employers’ Pension Fund and Subsidiary out of New York, NY announced a filing this week and today the MPRA website showed that the Bricklayers and Allied Craftsmen Local No. 7 Pension Plan out of Austintown, OH (which was the sixth plan to file and then withdrew their application) refiled at a time when, according to their latest 5500 filing, they might have $8 million left in the fund and negative cash flow of $2.5 million.

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