Congress’ $1.1 Trillion Spending Bill Cuts 1 Million+ Multiemployer Plans, Effective 2015

The policymaking behind the Congressional Multiemployer Pension Reform Act of 2014 that cut more than a million retirees’ pension benefits is examined in American Retiree.com’s “Congress Allows Cuts to Multiemployer Plan Benefits in $1.1 Trillion Spending Bill” feature news report.

The article addresses how congressional leaders were pushed to find a resolution for multiemployer plans after the Pension Benefit Guaranty Corporation’s (PBCG) FY 2013 Projections Report concluded that the defined pension plans are severely underfunded across the U.S. and could run a $49.6 billion deficit by FY 2023.

The Multiemployer Pension Reform Act of 2014:

·         Allows plan sponsors of “critical and declining status” pension plans to suspend benefits for active and retired participants

·         Allows the PBCG to approve partitions without a bankruptcy requirement

·         Provides increased authority for the PBCG to aid plan mergers as well as the financial assistance to do so

·         Increases pension plan premiums paid by sponsors from $12 to $26 per capita

Lawmakers in favor proclaim it will keep the failing plans from becoming insolvent.

Challengers of the Multiemployer Pension Reform Act worry the legislation will set an example for other distressed federal retirement programs.

Read more about the Multiemployer Pension Reform Act of 2014: http://www.americanretiree.com/congress-allows-cuts-to-multiemployer-plan-benefits-in-1-1-trillion-spending-bill

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