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Blogs by Lawrance G Lux
Multiemployer Pension Plans 12/16/2003 10:14:00 AM
They might become my next research effort. It will be a lot of work, as I have not done much work in the area, since the passage of the enabling act in 1980.
The current Multiemployer Funds are in bad shape, and getting worse. Successful Employers have to support unsuccessful Employers, while contribution commitments are not being met. This fact is countered by Labor and Managers of unsuccessful businesses outnumbering the successful Business managers on the Trust boards. Pension benefits are being raised, as contributions decline, and Retirees begin to outnumber active Workers. The 1980 law throws the burden on the Federal Government with failures in the Multiemployer pensions. Thoughts on the matter:
1) The Government must set Benefits limits, not just after they take over the Pension, but primary control of Trust Board awards.
2) Unsuccessful business contributions must be mandated, not defrayed; these contributions must be given the sanction of taxation. It will stop the practice of nonpayment in the face of claimed non-Profitability. The Contributions will be tied to volume, with businesses forced to seek Debt finance or Bankruptcy.
3) Neither Labor or unsuccessful businesses should be allowed a vote on the Trust Boards, prior to their making their own contributions to the Fund.
