House Committee Addresses Multi-Employer Pension Plan Problems

The House Subcommittee on Health, Employment, Labor, and Pensions discussed the funding crisis faced by many multi-employer pension plans and received testimony from expert panelists on proposed solutions during a Tuesday hearing. Collective bargaining agreements establish these multiemployer defined benefit pension plans, which are administered jointly by employer and union official trustees.  Factors such as multiple investment downturns, an aging workforce, and fewer contributing employers have threatened the long-term sustainability of the multi-employer plan system.  Moreover, multi-employer plans are becoming increasingly reliant on the Pension Benefit Guaranty Corporation (PBGC) – which is itself underfunded – for financial assistance.  Continue reading this entry at Littler's Employment Benefits Counsel.