Report Points to Resilience in Multiemployer Defined Benefit Pension System

April 11, 2018

The construction industry’s multiemployer defined benefit pension system is showing signs of resilience, according to the recently revised Inventory of Construction Industry Pension Plans, MCAA and Horizon Actuarial Services’ groundbreaking analysis of historical trends in pension plans’ key operating data. Roughly 75% of all construction industry multiemployer plans are projected to be fully funded within 15 years according to the inventory, which is based on the annual reports (Form 5500) filed with the Labor and Treasury Departments for Plan Years 2006 through 2015.

Horizon Actuarial’s Cary Franklin, principal author of the report, notes that “plan resilience is the hallmark of the jointly sponsored construction industry plans,” which represent some 55% of all multiemployer plans nationally. Franklin also noted that the new data shows improved median plan funding status, reaching 82% in 2015, and modest growth in active participants in construction plans in years after 2011, all “modestly positive trends.”

“The 10-year data trends reflect the sound work plan trustees and bargaining parties continue to do to make sure the plan participants have good, hard-earned lifetime benefits they can rely on,” Franklin said, concluding that “labor and management plan trustees would benefit further if Congress would enact new options for plans to consider to help keep the system sustainable on a long-term basis.”

MCAA President Mike Brandt noted that, “Cary Franklin and his associates at Horizon have done a remarkable job – again – in producing this one-of-a-kind MCAA industry service and analysis, which is designed to help labor and management trustees benchmark their plan performance, help MCAA employers meet their year-end accounting disclosure requirements, and just as importantly – to guide national policy makers in enacting sound public policy decisions to allow plan trustees new options to improve the sustainability of the plans for the benefit of both employees and their families and their employers.”

“While the Fifth Edition of the Inventory shows some signs of steady improvement given the market rebounds since the 2008 Great Recession,” Brandt said, he cautioned that “there still is much underlying data in the Inventory underscoring the imperative need for deliberate legislative action – enacting the GROW Act H.R. 4997 – to give plan trustees more options and flexibility to keep these valuable benefits on a stronger and sustainable basis going into the indefinite future.”

DOWNLOAD
Related Articles
MCAA and the UA filed joint comments on a recent Department of Defense (DoD) procurement policy change proposal. Under the proposal, DoD contracting officers would be required to rate the performance of first-tier subcontractors on DoD construction contracts. MCAA and the UA support the proposed rules, which will lead to more discerning past performance evaluations of first-tier subcontractors competing for subsequent prime contract awards. MCAA and the UA also call for DoD and Federal Acquisition Regulation (FAR)-wide use of past performance evaluations of first tier subs in all prime contractor responsibility determinations.…
Principal Deputy Administrator for the U.S. Department of Labor’s Wage and Hour Division Jessica Looman has joined the lineup of speakers for the Construction Employers of America (CEA) legislative and regulatory conference on Wednesday, July 21st from 11:00 am - 3:00 pm EDT. The virtual event will focus on key regulatory and legislative issues affecting the union construction industry today. As with previous in-person conferences, the CEA will host both Regulators and Representatives from Congress for their expertise and insight on a variety of topics.…
Pandemic legislation has created significant opportunities for small and medium sized businesses. Rules ever changing, the programs have been shaped time and time again. Spend one hour with Withum experts as they detail some of the programs which have been most beneficial to businesses. The free webinar takes place June 28, 2021 from 2:00 pm - 3:00 pm EDT.…
The Construction Employers of America (CEA), of which MCAA is a charter member, will be hosting this year’s legislative and regulatory conference virtually on Wednesday, July 21st, from 11:00 am - 3:00 pm EDT, and it will focus on key regulatory and legislative issues affecting the union construction industry today. As with previous in-person conferences, the CEA will host both Regulators and Representatives from Congress for their expertise and insight on a variety of topics.…

While manufacturers are working to keep up, ongoing supply chain disruptions are impacting nearly every product category, supplier and consumer. Join MCAA and Ferguson on Sept. 23 at 2pm ET for a discussion into today’s challenging supply landscape. http://ow.ly/7AtI50G85Rf

Did you know MCAA members can enroll with @ClickSafetyOT and receive 10% off OSHA 10 and OSHA 30 training courses?
https://www.mcaa.org/wp-content/uploads/2021/01/ClickSafety-Partner-Discount-Flyer-MCAA-2021.pdf

CRW Mechanical won the bid for a parking garage’s gas piping project by switching to a @MilwaukeeTool M18™ Force Logic™ Long Throw Press Tool, saving 15 percent on the project’s labor costs and 125 hours—all with just one Long Throw Press Tool onsite.

http://ow.ly/bc6450G7WtU

Load More...