Freightmaster1
TB Legend
- Credits
- 615
The Pension Analytics Group says the act would only temporarily mask the deficits, as opposed to reducing them and that the only solution is to reduce benefits across the board.
In conclusion, The Pension Analytics Group says that the only option to prevent insolvency of multiemployer pension plans is to implement deep benefit cuts across both young and old plan participants alike. The group estimates that only 10% of the weakest 231 plans are legally permitted to cut benefits. Thus, the organization suggests that the Multiemployer Pension Reform Act of 2014 be amended to permit a greater number of the plans to reduce benefits—and possibly make the cuts a requirement.
“Benefit cuts are painful, but for many weak plans, they are already inevitable,” The Pension Analytics Group says. “It is a merely a question of the timing and size of the cuts. Either an across-the-board benefit cut of between 10% and 30% needs to be implemented right now, or the plans will eventually become insolvent, at which point beneficiaries may receive only cents on the dollar of their accrued benefits.”
https://www.planadviser.com/butch-lewis-act-said-fail-address-multiemployer-pension-deficits/
In conclusion, The Pension Analytics Group says that the only option to prevent insolvency of multiemployer pension plans is to implement deep benefit cuts across both young and old plan participants alike. The group estimates that only 10% of the weakest 231 plans are legally permitted to cut benefits. Thus, the organization suggests that the Multiemployer Pension Reform Act of 2014 be amended to permit a greater number of the plans to reduce benefits—and possibly make the cuts a requirement.
“Benefit cuts are painful, but for many weak plans, they are already inevitable,” The Pension Analytics Group says. “It is a merely a question of the timing and size of the cuts. Either an across-the-board benefit cut of between 10% and 30% needs to be implemented right now, or the plans will eventually become insolvent, at which point beneficiaries may receive only cents on the dollar of their accrued benefits.”
https://www.planadviser.com/butch-lewis-act-said-fail-address-multiemployer-pension-deficits/