Oct 24

Labor Relations General Session: Pension Plan Update

Today’s Labor Relations General Session was a departure from the traditional panel discussion. Rather, the session focused on the important, if somewhat hard to hear, news about multiemployer pension plans.

Randy DeFrehn, Executive Director of the National Coordinating Committee for Multiemployer Plans, kicked off the session with a run-down of the legislative action NCCMP has pursued to protect local pension plans in the face of the economic downturn, including a freeze on plans’ “Zone” status, options for small plans to merge, “partitioning,” and some technical corrections.

“There’s a misconception that multiemployer plans’ benefits are too high,” DeFrehn said. “That’s not the case. Yes, some plans will have to make strategic decisions to cope with rising benefit costs to make these plans more stable. But Congress is trying to give us the breathing room to make those changes.”

Labor Relations Task Force Chair and NECA President-elect Dennis Quebe echoed DeFrehn’s comments. “When we look at our so-called ‘benefit burden,’ we want to ask ‘who’s to blame?’ To me, blame implies that at the time, someone knew there would be negative consequences.  But at the time, they were the right thing to do. I still think they’re the right thing to do. But we need to change how we do them. The impact will be significant, but not overwhelming.”

NEBF Executive Secretary/Treasurer Larry Bradley make a great report on the fiscal health of NEBF. “NEBF’s actuaries have certified our plan in the Green Zone since the law was passed in 2006, and I’m proud to report that even through the recession, we have remained in the Green Zone.  Our actuaries remain optimistic of the future health of the plan.

“What’s important to us are the people behind the plan – the lives we touch and the very real ways we can help them,” Bradley concluded. He also mentioned that NEBF’s website will soon have sample disclosure forms for contractors to use to meet the revised FASB reporting requirements for pension plan withdrawal liability, now based solely on publicly available plan information.

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