United Furniture Workers Pension Fund A, Nashville, Tenn., is seeking permission to cut benefits for participants, including retirees, as part of a proposed rescue plan awaiting approval from the Treasury Department.
The application to reduce benefits was submitted Aug. 17. Pension fund assets as of Feb. 29 were $70 million and liabilities were $181.5 million, for a funded status of 38.6%. The proposed benefit reductions would start May 1, 2017, if approved.
In a letter to participants, trustees said the fund is projected to be insolvent by 2021.
Once an application is submitted, the Treasury Department has 30 days to post the application on its website and 225 days to respond.
The pension fund’s board of trustees also applied to the Pension Benefit Guaranty Corp. for a partition that would transfer the PBGC-guaranteed portion of some benefits to a newly created successor plan, to be administered by the trustees.