There are 114 multi-employer pension funds covering 1.3 million union members that are projected to fail in the next 20 years, according to a new report.
Unionized workers who are relying on a union pension fund to help pay for their retirement may need to start saving now.
“As many as 114 multiemployer pension plans covering nearly 1.3 million workers are severely underfunded and headed toward failure within the next 20 years,” reports the Society of Human Resources Management.
The forecast, from a new analysis by actuarial consulting firm Cheiron Inc., draws on the latest annual financial reports filed by multiemployer pension plans with regulators. The troubled plans have total assets of $43.5 billion and liabilities of $79.9 billion, leaving unfunded liabilities—future benefit payouts promised to retirees and beneficiaries for which reserve funds have not been set aside—of $36.4 billion.
Multiemployer pension plans, also known as Taft-Hartley plans, cover unionized workers and pensioners. Employer contributions are determined by collective bargaining, and the plan is governed by a joint labor-management board of trustees. Failing multiemployer plans must inform regulators that they are in “critical and declining” status, in keeping with the Multiemployer Pension Reform Act. The law requires pension plans to notify regulators annually if their financial condition is worsening and they expect to fail within 20 years.
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Just three of the pension plans account for $22.8 billion—or more than 62.5 percent—of the $36.4 billion in unfunded liabilities of failing multiemployer plans, Cheiron found. The Teamsters’ Central States, Southeast and Southwest Areas Pension Plan (usually shortened to “Teamsters’ Central States”) has the most unfunded liabilities at $17.2 billion, followed by the Bakery and Confectionary Union’s plan ($3.2 billion) and the United Mine Workers’ ($2.4 billion).
Read the more from SHRM here.
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Maybe the Union rats should stop looting our Pension funds.Have you ever checked out the billions!! diverted to ULLICO. 45 United Brotherhood of Carpenters funds BY FORCE at the DEMAND of Dirty Doug McCarron.Do you know the rats at ULLICO lend that money to anti Union Donny Trump.Stephen of Related and SL Green as well as other anti Union companies. Check out the moves they made to take fiduciary power from fund when they created Hamilton Lane. How about the high risk alternative investments our own Union International leaders whom we trusted forced on our funds that have resulted in huge losses?Of course Borzi of the EBSA and Gautbaum of the PGBC have been working with the NCCMP/UNION rats to tank defined benefit funds since 2011. Watch for the new composite Plan BS created by the same NCCMP/UNION rats.You will now get a pension check based on fund performance. When the thieves loot the fund and the fund drops so does your monthly pension check. AUTOMATICALLY.The MPRA legislation was not written and created by Wall St or the Feds Our own Union Leaders wrote it to allow them to steal from retirees checks to cover for their looting.1.3 million in 20 years your ass. Try 2 years tops.We already have 18 funds in line for cuts approval.The Central States fund alone has over 400,000.How abut the EBSA refusal to investigate these high risk investments despite being warned in 2010 by the IRS,in 2013 by the IG office and again in 2014 by the IG Office