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ML BeneBits

The potential financial impact of severely underfunded multiemployer pension plans continues to be the focus of contributing employers, boards of trustees, and the participants and beneficiaries of such plans. The Bipartisan Budget Act of 2018 (Budget Act), passed into law on February 9, 2018, includes provisions intended to address these concerns. Of particular significance, the Budget Act creates a special select committee composed of 16 members—equally divided between the House and Senate and equally divided between political parties—to review proposals to improve the funding status of struggling multiemployer pension plans. The select committee is expected to review four legislative proposals that are currently available, and may review additional proposals. The select committee has until November 30, 2018, to report its recommendations and proposed legislative solutions, and Congress then has until the December adjournment date (at this time not determined) to vote on the recommendations. As 2018 continues, we will be monitoring and reporting on the actions of the select committee, including its recommendations at the end of November and any congressional action on those recommendations.