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MCAA Releases New Edition of Comprehensive Inventory of Construction Industry Multiemployer Pension Plans

 

ROCKVILLE, Md. — The Mechanical Contractors Association of America, Inc. (MCAA), in conjunction with Horizon Actuarial Services, LLC, has released a new edition of its comprehensive inventory and analysis of construction industry multiemployer defined benefit pension plans.

The report examines trends in plan demographics, cash flows, and investment returns, funding status and other plan costs and expenses over the 10-year period from 2003–2012.

This edition is expanded to include summary statistics for construction industry plans by the state in which they are located, as well as their certified status under the Pension Protection Act of 2006 (PPA). The result is a valuable tool that will assist the union sector of the construction industry in better understanding how multiemployer pension plans have evolved and where they may be headed, to aid them in ensuring the plans’ futures.

According to this expanded 2014 edition of the MCAA/Horizon Actuarial Services Inventory of Construction Industry Pension Plans, Form 5500 data show that long-term trends remain challenging for multiemployer defined benefit plans, documenting the urgent need for Congressional action to enact reforms — such as the Solutions Not Bailouts legislative reform proposal backed by MCAA and the National Coordinating Committee for Multiemployer Plans’ (NCCMP) legislative coalition.

The MCAA/Horizon report offers a factual and objective analysis from direct plan Form 5500 filings with the Department of Labor (DOL) and reflects the most comprehensive and up-to-date data available. The inventory is not a survey of a subset of plans in the construction industry; it is based on the entire DOL database of plan filings. The MCAA/Horizon inventory, analysis and report leads to several inescapable conclusions about the long-term viability of the multiemployer plan system.

MCAA’s commentary and analysis (independent of Horizon Actuarial Services’ non-partisan objective analysis) highlights the urgent need for Congressional action in 2014 to shore up the long-term sustainability of the nation’s multiemployer pension plan system.

In addition to these overall key findings stemming from Horizon’s detailed analysis of the 803 construction industry plans in the database, there are several other new and very helpful aspects of the report for contributing employers, plan trustees, plan professionals and participating employees to use to evaluate their plan’s performance and benchmark against similar plans in their craft by plan asset size.

“With the release of this publication, MCAA is taking yet another step toward securing a stable future for the multiemployer defined benefit pension plans our workforce relies upon,” said Chuck Fell, MCAA president. “We realize that MCAA’s inventory report fills a unique need in the industry by providing a groundbreaking approach to these ongoing issues. That’s why, at this time of crisis, MCAA is making this inventory available to the entire industry at no cost.”

For additional information, visit www.mcaa.org.