The Joint Select Committee on Solvency of Multiemployer Pension Plans is examining the ways to find a solution to the dire situation in the multiemployer pension industry.
Created by the Bipartisan Budget Act of 2018, the Committee is tasked with studying the challenges faced by these plans, reviewing potential solutions and developing legislative recommendations. Since March, the Committee held 5 public hearings, hearing from all sides including participants, retirees,actuaries and other industry experts. In total, the overall shortfall for these plans, which cover about 3 million participants has grown from about $200 billion to$680 billion today, threatening the viability of these plans as well as that of its safety-net PBGC fund, which has a $67 billion deficit. Based on the testimony heard by the Committee, only 1% of these plans are 100% funded and over one million participants are in plans that are considered to be on the brink of failure.
While the Committee has not released its findings yet, it is continuing to study this issue as well as possible solutions, with the goal of completing its work by the end of 2018.