The Treasury Department approved two multiemployer pension funds' applications requesting permission to reduce benefits to remain solvent under the Kline-Miller Multiemployer Pension Reform Act of 2014.
Two letters posted on the Treasury Department's website show that it approved the applications of Composition Roofers Local 42, Cincinnati, and IBEW Local Union No. 237 Pension Plan, Niagara Falls, N.Y.
Composition Roofers Local 42 proposed to implement a flat 45% benefit reduction to all participants, except for those aged 80 or older or those who are disabled. The plan, which had $26.4 million in assets and $50.5 million in liabilities as of Jan. 1, 2018, projects that it will be insolvent by plan year 2030 without the benefit reductions, effective April 1, 2020.
IBEW Local Union No. 237 Pension Plan is projected to be insolvent by plan year 2028 and is proposing the start the benefit reductions on July 1, 2020. Per the latest available Form 5500 filing, the plan had $19.3 million in assets as of Jan. 1, 2018, and was 25.5% funded.