As the country continues to claw its way out of a recession, a small number of multiemployer pension plans are still teetering on the precipice of insolvency. And, if those pension plans fail, beneficiaries would be forced to rely on the taxpayer-funded federal pension insurance system, the Pension Benefit Guaranty Corp. (PBGC), which could lead to reduced benefits and added uncertainty.
The Mechanical Contractors Association of America Inc. (MCAA), in conjunction with Horizon Actuarial Services LLC, has released a first-of-its-kind comprehensive inventory and analysis of construction industry multiemployer pension plans.
Along with underfunded corporate and public pensions, many union pensions are massively in the red. For employers who have union workers who participate in these types of multiemployer pension plans, the growing liability involved with withdrawing from pension funds presents a serious issue.