Changes to Multiemployer Pension Plans
On December 16, 2014, the Kline-Miller Multiemployer Pension Reform Act of 2014 (MPRA) was enacted into law. In MPRA, Congress established a new process for multiemployer pension plans to propose a temporary or permanent reduction of pension benefits if a plan is projected to run out of money before paying all promised benefits.
MPRA requires the Treasury Department, in consultation with the Pension Benefit Guaranty Corporation (PBGC) and the Department of Labor, to review a multiemployer pension plan’s application to reduce benefits and determine whether it meets the requirements set by Congress.
It is important to note that most multiemployer pension plans are sufficiently funded and will not be eligible to apply for a reduction of pension benefits under MPRA. To find out if MPRA could impact you, contact your pension plan.
The resources on this page provide additional information about MPRA and the Treasury Department’s process for reviewing applications to reduce benefits paid by multiemployer pension plans that are in critical and declining status.
On May 6, 2016, Secretary Lew sent a letter to Congress regarding the Kline-Miller Multiemployer Pension Reform Act of 2014. You can view that letter here.
Plasterers & Cement Masons Local No. 94 Pension Fund
On November 8, 2018, the Board of Trustees of the Plasterers & Cement Masons Local No. 94 Pension Fund was notified that its application to reduce pension benefits under the Multiemployer Pension Reform Act of 2014 (MPRA) meets the requirements under MPRA. Before any benefit reductions can take effect, Fund participants and beneficiaries will vote on the proposed benefit reductions. Ballots will be mailed to participants and beneficiaries on or around November 20, 2018. Please check back on this website for more information on the vote.
Plasterers Local 82 Pension Fund
On November 8, 2018, the Board of Trustees of the Plasterers Local 82 Pension Fund was notified that its application to reduce pension benefits under the Multiemployer Pension Reform Act of 2014 (MPRA) meets the requirements under MPRA. Before any benefit reductions can take effect, Fund participants and beneficiaries will vote on the proposed benefit reductions. Ballots will be mailed to participants and beneficiaries on or around November 20, 2018. Please check back on this website for more information on the vote.
Local 805 Pension & Retirement Plan
On February 23, 2018, the Board of Trustees of the Local
805 Pension & Retirement Plan (Fund) submitted an application to reduce
pension benefits under MPRA. The Fund was notified on October 5, 2018,
that its application met the requirements for approval. Participants and
beneficiaries of the Fund were then given an opportunity to vote on whether to
approve or reject the proposed benefit reduction. MPRA provides that
unless a majority of participants and beneficiaries vote to reject the benefit
reduction, the reduction must go into effect. The voting period ran
through November 9, 2018.
Results of Vote
The Fund identified 1,985 participants and beneficiaries
who were eligible to vote, and ballots were delivered to 1,929 of these
individuals. (56 individuals could not be located using reasonable
means.)
Of the eligible voters identified by the Fund who
received a ballot 27.7% (535) voted to reject the benefit reduction.
Because a majority of eligible voters who received a ballot did not vote to
reject the benefit reduction, the benefit reduction will be permitted to take
effect on January 1, 2019.
Vote Summary:
- Ballots rejecting the suspension:
535
- Ballots approving the
suspension: 296
- Ballots not
returned:
1,098
The Fund was notified on November 16, 2018, that the
final authorization to reduce benefits had been issued. MPRA – Final Authorization Letter If you have questions
specifically about your benefits, please see the ballot materials that were
previously sent to you. You may also call the Pension Fund Office at
212-308-4200.
Ironworkers Local 16 Pension Fund
On December 19, 2017, the Board of Trustees of the Ironworkers Local 16 Pension Fund (Fund) submitted an application to reduce pension benefits under MPRA. The Fund was notified on August 3, 2018, that its application met the requirements for approval. Participants and beneficiaries of the Fund were then given an opportunity to vote on whether to approve or reject the proposed benefit reduction. MPRA provides that unless a majority of participants and beneficiaries vote to reject the benefit reduction, the reduction must go into effect. The voting period ran through September 17, 2018.
Results of Vote
The Fund identified 1,044 participants and beneficiaries who were eligible to vote, and ballots were delivered to 1,038 of these individuals. (6 individuals could not be located using reasonable means.)
Of the eligible voters identified by the Fund who received a ballot 33.91% (352) voted to reject the benefit reduction. Because a majority of eligible voters who received a ballot did not vote to reject the benefit reduction, the benefit reduction will be permitted to take effect on October 1, 2018.
Vote Summary:
- Ballots rejecting the suspension: 352
- Ballots approving the suspension: 144
- Ballots not returned: 542
The Fund was notified on September 14, 2018, that the final authorization to reduce benefits had been issued. MPRA IW16 Final AuthorizationIf you have questions specifically about your benefits, please see the ballot materials that were previously sent to you. You may also call the Pension Fund Office at (410) 828-5282.
Western States Office and Professional Employees Pension Fund
On May 15, 2018, the Board of Trustees of the Western States Office and Professional Pension Fund (Fund) submitted an application to reduce pension benefits under the Multiemployer Pension Reform Act of 2014 (MPRA). The Fund was notified on August 3, 2018, that its application to reduce pension benefits under MPRA met the requirements for approval. Participants and beneficiaries of the Fund were then given an opportunity to vote on whether to approve or reject the proposed benefit reduction. MPRA provides that unless a majority of participants and beneficiaries vote to reject the benefit reduction, the reduction must go into effect. The voting period ran through September 7, 2018.
Results of Vote
The Fund identified 7,331 participants and beneficiaries who were eligible to vote, and ballots were delivered to 7,232 of these individuals. (Ninety-nine individuals could not be located using reasonable means.)
Of the eligible voters identified by the Fund who received a ballot 32.16% (2,326) voted to reject the benefit reduction. Because a majority of eligible voters who received a ballot did not vote to reject the benefit reduction, the benefit reduction will be permitted to take effect on October 1, 2018.
Vote Summary:
- Ballots rejecting the suspension: 2,326
- Ballots approving the suspension: 920
- Ballots not returned: 3,986
The Fund was notified on September 14, 2018, that the final authorization to reduce benefits had been issued. MPRA WSOPE Final Authorization If you have questions specifically about your benefits, please see the ballot materials that were previously sent to you. You may also contact the Pension Fund Office’s Recovery Plan Call Center at 1-888-999-4089, open 9:00 AM PT to 5:00 PM PT, Monday through Friday.
Alaska Ironworkers Pension Plan
On December 19, 2017, the Board of Trustees of the Alaska Ironworkers Pension Plan (Plan) submitted an application to reduce pension benefits under the Multiemployer Pension Reform Act of 2014 (MPRA). The Plan was notified on May 3, 2018, that its application met the requirements for approval under MPRA. Participants and beneficiaries of the Plan were then given an opportunity to vote on whether to approve or reject the proposed benefit reduction. MPRA provides that unless a majority of participants and beneficiaries vote to reject the benefit reduction, the reduction must go into effect. The voting period began ran through June 2, 2018.
Results of Vote
The Alaska Ironworkers Pension Plan identified 824 participants and beneficiaries who were eligible to vote, and ballots were delivered to 823 of these individuals. (The remaining individual could not be located using reasonable means.)
Of the eligible voters identified by the Plan, 17.25 percent (142) voted to reject the benefit reduction. Because a majority of eligible voters who received a ballot did not vote to reject the benefit reduction, the benefit reduction will take effect on July 1, 2018.
Vote Summary:
- Ballots rejecting the suspension: 142
- Ballots approving the suspension: 175
- Ballots not returned: 507
The Plan was notified on June 8, 2018, that the final authorization to reduce benefits had been issued. If you have questions specifically about your benefits, please see the ballot materials that were previously sent to you. You may also contact the Plan office at 907-561-5119 or 800-325-6532.
International Association of Machinists Motor City Pension Plan
On March 29, 2017, the Board of Trustees of the International Association of Machinists Motor City Pension Plan (Plan) submitted an application to reduce pension benefits under the Multiemployer Pension Reform Act of 2014 (MPRA). The Plan was notified on November 6, 2017, that its application met the requirements for approval under MPRA. Participants and beneficiaries of the Fund were then given an opportunity to vote on whether to approve or reject the proposed benefit reduction. MPRA provides that unless a majority of participants and beneficiaries vote to reject the benefit reduction, the reduction must go into effect. The voting period began on November 16, 2017, and ended on December 7, 2017.
Results of Vote
The International Association of Machinists Motor City Pension Plan (Plan) identified 1,247 participants and beneficiaries who were eligible to vote, and ballots were delivered to 1,211 of these individuals. (The remaining 36 individuals could not be located using reasonable means.) Of the eligible voters identified by the plan, 30.64 percent (371) voted to reject the benefit reduction. Because a majority of eligible voters who received a ballot did not vote to reject the benefit reduction, the benefit reduction will take effect on January 1, 2018.
Vote Summary:
- Ballots rejecting the suspension: 371
- Ballots approving the suspension: 126
- Ballots not returned: 714
The Fund was notified on December 13, 2017, that the final authorization to reduce benefits had been issued. IAM final approval letterIf you have questions specifically about your benefits, please see the ballot materials that were previously sent to you. You may also contact the Fund at 1. 248.813.9800
New York State Teamsters Conference Pension and Retirement Fund
On May 15, 2017, the Board of Trustees of the New York State Teamsters Conference Pension and Retirement Fund (Fund) submitted an application to reduce pension benefits under the Multiemployer Pension Reform Act of 2014 (MPRA). That application was approved on August 3, 2017. Participants and beneficiaries of the Fund were then given an opportunity to vote on whether to approve or reject the proposed benefit reduction. MPRA provides that unless a majority of participants and beneficiaries vote to reject the benefit reduction, the reduction must go into effect. The voting period began on August 16, 2017, and ended on September 6, 2017.
Results of Vote
The New York State Teamsters Conference Pension and Retirement Fund identified 35,173 participants and beneficiaries who were eligible to vote, and ballots were delivered to 34,636 of these individuals. (The remaining 537 individuals could not be located using reasonable means.)
Of the 34,636 participants and beneficiaries who received a ballot, 28.26 percent (9,788) voted to reject the reduction. Because a majority of eligible voters who received a ballot did not vote to reject the benefit reduction, the benefit reduction will take effect on October 1, 2017.
Vote Summary:
· Ballots against the reduction: 9,788
· Ballots in favor of the reduction: 4,081
· Ballots delivered but not cast: 20,767
The Fund was notified on September 13, 2017, that the final authorization to reduce benefits had been issued. NYST Final Approval Letter If you have questions specifically about your benefits, please see the ballot materials that were previously sent to you. You may also contact the Fund at 1.877.698.3863.
On March 15, 2017, the Board of Trustees of the United Furniture Workers Pension Fund A (Fund) submitted an application to reduce pension benefits under the Multiemployer Pension Reform Act of 2014 (MPRA). That application was approved on July 20, 2017. Participants and beneficiaries of the Fund were then given an opportunity to vote on whether to approve or reject the proposed benefit reduction. MPRA provides that unless a majority of participants and beneficiaries vote to reject the benefit reduction, the reduction must go into effect. The voting period began on August 3, 2017, and ended on August 24, 2017.
Results of Vote
The United Furniture Workers Pension Fund A identified 9,595 participants and beneficiaries who were eligible to vote, and ballots were delivered to 9,273 of these individuals. (The remaining 322 individuals could not be located using reasonable means.) Of the 9,273 participants and beneficiaries who received a ballot, 21 percent (1,928) voted to reject the suspension. Because a majority of eligible voters who received a ballot did not vote to reject the benefit reduction, the benefit reduction will take effect on September 1, 2017.
Vote Summary:
Ballots against the reduction: 1,928
Ballots in favor of the reduction: 1,041
Ballots delivered but not cast: 6,304
A final authorization to reduce benefits was issued on August 31 here. If you have questions specifically about your benefits, please see the ballot materials that were previously sent to you. You may also contact the Fund at 1.615.889.8860 or 1.800.800.8860.
Final Regulations Released
On April 26, 2016, the Treasury Department released final regulations implementing the Kline-Miller Multiemployer Pension Reform Act (Kline-Miller). These regulations finalize the proposed and temporary regulations that were issued in June 2015 and September 2015 and address stakeholder comments.
The final regulations do not change the basic requirements for applications to reduce pension benefits. They provide further clarifications based on information received during the public comment period. The final regulations can be viewed online here.
Notice
If you are a participant in a multiemployer pension plan that has submitted a benefit suspension application, the plan's Board of Trustees is required to provide notice of the application to reduce benefits to you. That notice is also required to include an individualized estimate of the effect of the proposed benefit reductions on you. If you have questions about how proposed benefit reductions will specifically impact you, please contact the plan administrator. Contact information for the plan administrator is available in the summary plan description for your pension plan.
Other Details
Under Kline-Miller, Treasury is responsible for determining whether the application for a reduction of benefits meets the requirements set by Congress. Benefits cannot be reduced until after the following actions take place:
- The plan sponsor must notify participants and beneficiaries of the application for a benefit reduction and provide an individualized estimate of reduced benefits
- Participants and beneficiaries must have an opportunity to comment on the application
- Treasury must review and, if the application satisfies all of the Kline-Miller requirements, must approve the application
- Participants and beneficiaries must have an opportunity to vote on the benefit reduction
Treasury has up to 225 days to approve or deny an application, and, if an application is approved, 30 days to administer a vote on the proposed benefit reductions.