Getting Blood From a Stone: When Contributing Employers Are Insolvent
Published November 1, 2014
John C. Kilgannon and Leonard P. Goldberger
It is no secret that multiemployer pension funds are facing a multitude of threats, many of which are beyond the control of plan administrators. Over the past decade, many multiemployer pension plans suffered dramatic underfunding caused by investment losses and business failures of contributing employers. This underfunding has been compounded by the growing disconnect between the number of retirees and the decreasing base of active participants. Bankruptcy filings by contributing employers have also impacted the economic stability of multiemployer plans.