Restructuring Occupational Pension Plans in Crisis: A US Labor–Management Case Study
Rotman International Journal of Pension Management, Volume 6, Issue 1, Spring 2013
8 Pages Posted: 18 Jun 2013
Date Written: May 28, 2013
Defined benefit pension funds in the United States experienced material declines in funded ratios in the past decade. The events of 2008 coincided with the implementation of a new federal pension funding regime, the Pension Protection Act of 2006. This case study describes a unique pension agreement between a major American labor union and the sixth largest American employer, involving the merger of four underfunded multiemployer pension plans that restructured the legacy benefits through a financial transaction and redesigned future benefits and funding policy.
Keywords: Defined Benefit, Funding Policy, Multiemployer Plan, Pension Agreement, Pension Fund
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