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Pension Funds

4 more multiemployer pension funds apply for benefit reductions

Updated with correction

Four more multiemployer pension funds have applied to reduce benefits in order to avoid insolvency, according to the Treasury Department's website listing applications under the Kline-Miller Multiemployer Pension Reform Act of 2014.

Southwest Ohio Regional Council of Carpenters Pension Plan, Independence, has 5,487 participants, of which 4,312 will be impacted by the benefit reductions averaging 14.7%, which would go into effect March 2019. The pension fund is currently 49.3% funded, with $227 million in assets and $460 million in liabilities as of plan year 2017. Without cuts, the plan is projected to be insolvent by 2036.

Mid-Jersey Trucking Industry and Local No. 701 Pension Fund, North Brunswick, N.J., has 1,887 participants, but only 130 active workers. The $237.6 million pension fund would be insolvent by 2054 without the benefit reductions, and 71.3% of participants would have no reduction. The plan has $341 million in liabilities and is 69.7% funded.

Toledo (Ohio) Roofers Local No. 134 Pension Plan had assets of $22.4 million as of Dec. 31, 2017, and is 54.3% funded. With a ratio of 2.2 inactive participants for every active worker, it is projected to be insolvent by 2031.

Local 807 Labor-Management Pension Fund, Long Island City, N.Y., is 43.4% funded, with $147 million in assets and $339 million in liabilities as of Sept. 1, 2017. It is projected to be insolvent in 13 years without the suspensions. Its ratio of inactive to active participants is 5.5-to-1.

To date, the Treasury Department has denied five MPRA applications for benefit suspensions, and approved five: Iron Workers Local 17 Pension Fund, Cleveland; International Association of Machinists of Motor City Pension Fund, Troy, Mich.; New York State Teamsters Conference Pension and Retirement Fund, Syracuse; United Furniture Workers Pension Fund A, Nashville, Tenn.; and Alaska Ironworkers Pension Plan, Anchorage.