Newly Released Construction Multiemployer Pension Plan Inventory Supports AGC Lobbying Efforts
Volatile financial markets and changing worker demographics have lead to funding shortfalls in construction-industry multiemployer pension plans that cannot easily be corrected by only increasing contribution rates, explains a report recently released by the Mechanical Contractors Association of America (MCAA) and Horizon Actuarial Services. The Inventory of Construction Industry Pension Plans, 2012 Edition contains an inventory of historical data for all multiemployer pension plans in the construction industry (not just mechanical trades). It summarizes and analyzes key trends in plan demographics, cash flows, investments, funding, and expenses from 2001 through 2010 based on Form 5500 filings.
“By analyzing these trends, we can better understand how these construction industry plans have evolved over the past decade and where they may be headed in the future,” according to the report. The report offers information that may be useful to contributing employers in compliance with the new disclosure standard issued by the Financial Accounting Standards Board (FASB). It also provides plan comparative data that may be useful to plan trustees.
The report also supports efforts by AGC, MCAA, and others in the industry working together to educate Congress about the need for legislative reforms in laws governing multiemployer pension plans. AGC and MCAA are both members of two groups working together to develop solutions to the current crisis and to bring about long-term, systemic change. One of the groups is a broad, labor-management, cross-industry group of stakeholders led by The National Coordinating Committee of Multiemployer Plans called the Retirement Security Review Commission (RSRC). The other is specifically for construction employer associations.
The RSRC is in the latter stages of preparing recommendations to present to Congress. The recommendations are expected to include suggested technical corrections to the Pension Protection Act of 2006, additional tools for deeply troubled plans, models for flexible retirement plans, and miscellaneous other changes to the law. The intent is to provide reliable retirement income to workers while reducing financial risks to contributing employers. AGC will release the recommendations when final and ready.
Meanwhile, AGC and its allies in the construction employers coalition have already begun meeting with Congressional staff to educate them on the issues and set the stage for legislative action. Congress is not expected to begin to consider pension reform until 2013.
For more information, please contact Denise Gold at email@example.com.
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