Multiemployer Pensions: Support Composite Plan Adoption – AGC-GM

Multiemployer Pensions: Support Composite Plan Adoption

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AGC URGENT ACTION ALERT

The nation’s multiemployer pension plan system is facing a crisis. Over 100 plans and a million participants’ retirement security are in jeopardy.

Various measures have been proposed to address the severe underfunding of these plans and the federal agency serving as their financial backstop: the Pension Benefit Guaranty Corporation. However, one pension reform policy that should be enacted immediately is the authorization of composite plans.

A composite plan is a hybrid between a traditional defined contribution and a defined benefit plan. Composite plan legislation would be beneficial to the construction industry because:

  • The plan design would protect retirement savings from market downturns or other unforeseen circumstances;
  • These plans provide lifetime income to participants and give employers certainty as to how much they must contribute to the plans; and
  • The plan design is tried, true, and trusted. In fact, a similar, successful model is utilized in Canada.

Taking action is easy! Simply submit the pre-written message and tweet as is to your members of Congress or customize it with personal information on how this issue impacts you and your company.