Features, Finance, Municipal Government, National

Pension Funds Reducing Benefits

April 25, 2018

By Stephanie West

WASHINGTON, DC – Three multiemployer pension funds have applied for permission to reduce benefits to remain solvent. Local 94 fund from Harrison Pennsylvania is projected to be insolvent in 2026. Also a Sheet Metal Workers Local from Massillon Ohio and Plasterers Local 82 Pension Plan from Portland, Oregon.

The Local 94 fund from Harrisburg Pennsylvania is projected to be insolvent in 2026. It had $2.3 million in assets and $6 million in liabiliites as of April 30, according to its latest Form 5500.

The sheet metal workers’ pension fund covers 4,500 participants. It had $41.4 million in assets and $84.9 million in liabilities as of April 30, 2017, according to its latest Form 5500 filing.

The Plasterers Local 82 Pension Plan is projected to become insolvent by 2034. It’s proposing a 22% reduction in benefits by February 2019. Older or disabled participants would be protected. In 2017, the fund was 47% funded.

To date four pension funds have been approvdd for restructuring: Iron Workers Local 17 Pension Fund, Cleveland Ohio; International Association of Machinists of Motor City Pension Fund, Troy, Michigan; New York State Teamsters Conference Pension and Retirement Fund; and United Furniture Workers Pension Fund A, Nashville, Tennessee. With the latest filings, there are now seven applications under review.

Updated information about Multiemployer Pension Funds facing financial problems can be found on the Treasury Department’s website  under the Kline-Miller Multiemployer Pension Reform Act of 2014.

 

April 25, 2018

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