Composite Plans Offer Workers Security and Stability
On June 2, AGC along with other stakeholders released a report, Necessity Breeds Innovation: How Composite Plans Can Bring Sustainability to the Multiemployer Pension System, that looks at how composite plans would have fared better during the coronavirus emergency than traditional multiemployer pensions plans. AGC CEO Steve Sandherr said the new report makes it clear that composite plans offer workers the kind of security and stability that too many traditional multi-employer retirement plans promise but are unable to deliver. He went on to say hard-working construction professionals deserve a stable and secure retirement, and composite plans offer a superior path to providing that security.
Last month, the House passed its latest COVID-19 related relief package, the HEROES Act. Among its many provisions the bill included several multiemployer pension plan policy changes: a special partition program for failing plans; plan relief through zone freezes, funding, amortization and smoothing extensions; no PBGC premiums; increase in PBGC guarantee; and, authorization of Composite Plans. The Senate is working on a separate bill that would have to be negotiated with the House before any of the provisions become law. Despite expected changes, the HEROES Act is a clear indication that Congress is prioritizing multiemployer pension reform. AGC is hopeful that authorization of Composite Plans advances. Click "learn more" to read the report.
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