On March 11, President Biden signed the American Rescue Plan Act of 2021 (H.R. 1319) into law, including a controversial provision providing a Congressional Budget Office-estimated $86 billion taxpayer bailout of struggling multiemployer pension plans. The COVID-19 relief bill’s sudden bailout of some MEPPs has been disheartening to some small businesses and firms not affiliated […]
Merit shop contractors are typically wary of competing for taxpayer-funded construction contracts which are subject to government-mandated project labor agreements. Often their main concern is the viability of defined benefit multiemployer pension plans, which expose their businesses to potentially catastrophic MEPP liability. Information about the health of construction industry MEPPs provided by the U.S. Department of […]
Following this week’s post at TheTruthAboutPLAs.com about pensions and government-mandated project labor agreements, The Project Labor Agreement and Troubled Union Multiemployer Pension Plan Nexus, ABC’s Newsline published this article Jan. 30, 2019, Some Construction Industry Pension Plans Remain in Financial Trouble, about multi-employer pension plans. Merit shop contractors are typically wary of competing for taxpayer-funded construction […]
Construction unions attempt to entice merit shop craft professionals and new construction industry workers and apprentices into joining a union with promises of generous retirement benefits via multiemployer pension plans. Construction unions lobby elected officials in charge of procuring taxpayer-funded construction projects with arguments on why union contractors and union workers deserve special treatment through various […]
Construction unions attempt to entice merit shop craft professionals and young workers into joining a union with promises of generous retirement benefits through multi-employer pension plans (MEPPs). They also convince elected officials in charge of procuring taxpayer-funded construction projects why union contractors and union workers deserve special treatment through various schemes like government-mandated project labor […]
A new report shining light on the dreadful health of multi-employer pension plans (MEPPs) for U.S. union workers and retirees estimates such plans are only 52 percent funded, with a $369 billion shortfall. MEPPs in the construction industry are responsible for a significant amount of pension shortfalls.
Construction MEPPs are responsible for about $167 billion (or 47 percent) worth of PBGC-insured MEPP underfunding. Abd it could get worse. Fifty-five percent of the 1,488 MEPPs insured by the PBGC are in the construction industry. The largest number of employees from any industry, about 3.885 million or 37.4 percent of all PBGC-insured MEPP participants (workers and retirees), are from the construction industry.
There is an interesting piece in today’s Washington Times that examines how poorly performing union pension plans are at the heart of Big Labor’s support for health care reform and push for government-mandated project labor agreements (PLAs) on federal and federally-funded construction projects (“Unions Want Washington’s Help With Pension Funds,” 3/25/10). Nonunion workers and private companies could be forced into absorbing the […]
PLAs often require contractors to participate in union multi-employer pension programs mandated via applicable union collective bargaining agreements referenced in PLAs . Contributing to multi-employer pension plans is problematic for nonunion contractors for a variety of reasons highlighted here. An interesting article by Chang, Ruthenberg and Long Employee Benefit Attorneys warns employers about the problems with contributing […]
Yesterday I wrote about how pension provisions in typical PLAs: Hurt retirement for non-union workers. Employer retirement contributions into union pension plans on behalf of non-union workers are forfeited unless workers join a union. Keep underfunded and mismanaged union pension plans afloat. Expose contractors to underfunded multi-employer pension withdrawal liability. Increase costs to construction users because […]
A piece in The Washington Examiner (“Almost half of top unions have underfunded pension plans,” 6/7) reports that some major construction labor unions have underfunded pension plans. This is relevant to the PLA debate because PLAs typically force non-union employers and their employees to contribute to union pension funds for time worked on a PLA project. Readers may […]