Multiemployer Plans – A Proposal to Spread the Pain

Alicia Munnell, Jean-Pierre Aubry, Wenliang Hao and Anthony Webb ()

Issues in Brief from Center for Retirement Research

Abstract: The brief’s key findings are: *A small, but significant, number of multiemployer pension plans face insolvency in the next 20 years – despite actions to reduce benefits and raise contributions. *To avoid insolvency, a Commission with representatives from plans, employers, and unions has proposed allowing plans to cut accrued benefits of current workers and retirees. *Critics are concerned that such a tool is unnecessary and would unfairly hurt plan participants, particularly retirees. *Our analysis of one large plan suggests that the proposal would improve overall participant welfare, but leave the plan operating largely on a pay-as-you-go basis. *Thus, before approving the use of such a tool, regulators should have access to detailed plan data to ensure not only solvency, but also a reasonable level of funding.

Pages: 11 pages
Date: 2014-10
References: Add references at CitEc
Citations:

Downloads: (external link)
http://crr.bc.edu/briefs/multiemployer-plans-a-proposal-to-spread-the-pain-2// R
Our link check indicates that this URL is bad, the error code is: 403 Forbidden (http://crr.bc.edu/briefs/multiemployer-plans-a-proposal-to-spread-the-pain-2// [301 Moved Permanently]--> https://crr.bc.edu/briefs/multiemployer-plans-a-proposal-to-spread-the-pain-2//)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:crr:issbrf:ib2014-17

Access Statistics for this paper

More papers in Issues in Brief from Center for Retirement Research Contact information at EDIRC.
Bibliographic data for series maintained by Amy Grzybowski () and Christopher F Baum ().