The Internal Revenue Service posted temporary voting regulations for multiemployer pension plans in “critical and declining” status, driving the reality of pension claw backs home for union employees in the worst-funded plans.
Last year, to the surprise of most industry watchers, Congress passed the Multiemployer Pension Reform Act, which extended provisions of the Pension Protection Act of 2006, and created a new funding status—critical and declining—to account for plans expected to be insolvent in 15 years, or plans expected to be insolvent in 20 years that are less than 80 percent funded.
The law, pushed through as part of last year’s omnibus spending bill at the last minute of the Congressional session, gives plans in that status the right to reduce promised benefits to retirees, a previously prohibited measure.
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Nick Thornton
Nick Thornton is a financial writer covering retirement and health care issues for BenefitsPRO and ALM Media. He greatly enjoys learning from the vast minds in the legal, academic, advisory and money management communities when covering the retirement space. He's also written on international marketing trends, financial institution risk management, defense and energy issues, the restaurant industry in New York City, surfing, cigars, rum, travel, and fishing. When not writing, he's pushing into some land or water.
