ARTICLE
Tucked inside the coronavirus relief bill signed by President Biden is a significant legislative “fix” for multiemployer pension plans. The $86 billion funding is accessible to the 281 +/- critical and critical/declining plans via grants by the Pension Benefit Guaranty Corporation (PBGC). This will be a gamechanger for plans and pensioners in these troubled plans. That said, the impetus for additional legislation that could include composite plans now seems highly doubtful. Our national-level industry partners are looking at other variable pension plans that could help eliminate withdrawal liability for contractors participating in multiemployer plans. FYI for any of you Pension Fund Trustees out there, the bill increases PBGC premiums to $52 by 2032. The National Coordinating Committee for Multiemployer Plans (NCCMP) issued an alert that dives into additional details. -- TAUC