Members of the International Brotherhood of Teamsters protest in 2016 a plan by the Central States Pension Fund to reduce payments to retirees. Central States is a massive multiemployer plan that is projected to be insolvent by 2025. (Photo: Drew Angerer/Bloomberg)
Republican lawmakers in the Senate are advancing a proposal to rescue collectively bargained multiemployer plans headed toward insolvency.
The Multiemployer Pension Recapitalization and Reform Plan, authored by Sen. Chuck Grassley, R-IA, chair of the Senate Finance Committee, and Sen. Lamar Alexander, R-TN, chair of the Health, Education, Labor, and Pensions Committee, takes dramatically different steps to Democratic-backed legislation that advanced out of the House of Representatives this summer.
Partitioning orphaned participants
The proposal would partition orphaned participants from the 125 multiemployer plans in critical and declining status, allowing the original plan to continue paying benefits with contributions from healthy employers.
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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.
