Sunday, April 13, 2014
Many multi-employer pension plans are in serious trouble
The New York Times is reporting Sunday morning that many pooled multiemployer pension plans are on the brink of failure, according to a front page story by Mary Williams Walsh, here. The pensions had once been thought safer than single plans because the employers have to cover each other. Now, there is a push to have the PBGC, the Pension Benefit Guaranty Corporation, cover these.
Larry Buchson has a YouTube video on the problem here.
The plans are supposed to have an anticutback rule, which allows companies to stop continuing contributions but not to reneg on benefits already performed. However plans can be cut for spouses of employees who died before retirement.