Sheet Metal Workers Local Pension Fund, Troy, Mich., has reapplied for permission to reduce benefits to remain solvent, according to the Treasury Department's website listing applications under the Kline-Miller Multiemployer Pension Reform Act of 2014.
The board of trustees, which is based in Ohio, initially applied in March 2018 but withdrew the application in October, and were later told by a Treasury official that the fund was a candidate to reapply, according to the second application.
Excluding disabled participants who will see no cut, the new benefit reduction plan calls for average benefit reductions of 18.7% for retirees, 20.7% for terminated vested participants, 19.6% for active participants and 8.8% for beneficiaries. The cuts would go into effect May 1, 2020 if approved.
According to its latest 5500 filing for plan year ending April 30, 2018, the plan has $42.1 million in assets and is 43.4% funded. The plan is projected to be insolvent during its 2033 plan year without the changes.
So far, Treasury has denied five applications and approved 13 benefit reduction plans, with provisional approval for another one that is now being voted on by participants. The only pending application is the sheet metal workers.
