Yes, there are a great many troubled multi-employer pension plans. But it goes to far to claim the whole system is falling apart.
Forbes post, “In Defense Of Multi-Employer Pension Plans – Yes, Really”
Yes, there are a great many troubled multi-employer pension plans. But it goes to far to claim the whole system is falling apart.
Reality is , the PBGC is an insurance company that charged the multi employer plans a premium that was , and remains woefully inadequate to protect the participants . The PBGC knows of past , present and future plans that face insolvency , charges single employer plans a premium that does protect the participants and plays Chicken Little tunes in the background while multi employer plan participants face their senior years without financial security .
Add the most simple fact is that the law requires plans in the RED ZONE to have employers contributions pay a surcharge above the contractual contribution rates to restore the pension’s financial health . And the Trustees of the troubled plans almost always waive the surcharge , which benefits the employer , not the participants , not the Plan .
Given the structure of the Trustees includes Employer representatives , is it any wonder they vote to save their employer money and screw the employees ? Historically , employers on that shaky of financial footings rarely survive , file bankruptcy and despite being signatory to a Trust Agreement , are ordered to pay the pensions pennies on the dollar in direct violation of the Trust Agreement .
If the PBGC goes belly up , it will adversely affect 10 million people by some estimates ,which includes dependents of the retirees . Since the Government has oversight since 1982 over the Central States Plan , and it continues to struggle , can the hardworking people of our Blue Collar Nation expect the same government to fix the problem it had a major role in creating ?
John Kelder Sr.
former President , Teamsters Local 707
Former Trustee , Road Carriers 707 Pension Fund