On March 5, the U.S. House Education and Workforce’s Subcommittee on Heath, Employment, Labor and Pensions held a hearing titled, “Challenges Facing Multi-employer Pension Plans: Reviewing the Latest Findings by PBGC and GAO.” Harold Force, president of Force Construction Co. in Columbus, Ind., testified on behalf of AGC of America and was the sole employer witness. The Hearing focused on recent reports from the Pension Benefit Guaranty Corporation (PBGC) and preliminary findings of a General Accountability Office (GAO) report on the status of multi-employer pension plans. Mr. Force gave an employer perspective of plans with funding deficiencies and on the need to reform the system before it is too late.
The PBGC testified that many plans were hit hard from the recession and without Congressional action, the PBGC could become insolvent in the next 10 years – particularly if several large plans that are currently headed toward insolvency do, in fact, fail. The findings highlight the dire funding status of many plans and reiterate the need for bold and decisive reform of the system. AGC has been working for over a year with stakeholders on recommendations for Congress to reform the system. Mr. Force testified that, without giving plan trustees more flexibility, the system that many construction employers depend on to provide employee pensions could be in jeopardy.
AGC is working with Congressional leaders on legislation to address the multi-employer pension system and will work with them on enacting reform in the coming months. For more information on the hearing, you can visit the committee website, along with an archived webcast of the hearing.
The PBGC testified that many plans were hit hard from the recession and without Congressional action, the PBGC could become insolvent in the next 10 years – particularly if several large plans that are currently headed toward insolvency do, in fact, fail. The findings highlight the dire funding status of many plans and reiterate the need for bold and decisive reform of the system. AGC has been working for over a year with stakeholders on recommendations for Congress to reform the system. Mr. Force testified that, without giving plan trustees more flexibility, the system that many construction employers depend on to provide employee pensions could be in jeopardy.
AGC is working with Congressional leaders on legislation to address the multi-employer pension system and will work with them on enacting reform in the coming months. For more information on the hearing, you can visit the committee website, along with an archived webcast of the hearing.