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NABTU President Sean McGarvey Issues Statement Following Discussion Draft Introduction for Composite Plans

WASHINGTON, DC – Today, North America’s Building Trades Unions (NABTU) President, Sean McGarvey issued the following statement:

“We want to thank Chairman Kline and the House Committee on Education and Workforce, for the hard work to produce this discussion draft providing for the creation of composite plans. This addresses some of the critical issues remaining that need to be solved so we can move forward and finish reforming the multiemployer pension system. We look forward to working with the Committee, and all stakeholders, to continue the discussion and pass this long overdue legislation this year.”

Composite Plans are multiemployer retirement savings plans that draw from the best elements of defined benefit plans and defined contribution plans. These plans combine the best features of the current defined benefit and defined contribution plans to ensure regular, reliable monthly retirement income security for workers following a lifetime of service to their respective industries with the predictable cost structure of defined contribution plans. Employers benefit from predictability and the elimination of unfunded liability obligations that threaten their access from critical credit markets.

The 2013 report identifying comprehensive, long-term multiemployer pension reforms, Solutions not Bailouts<http://www.solutionsnotbailouts.com/>, called for the development of new plan designs in order to provide multiemployer pension funds with additional voluntary tools that would: strengthen the system, provide a lifetime benefit for employees, require no government funding, and provide a much needed incentive for employers to stay in the system.

Posted 14:27PM on September 14 2016 by Jessica
Categories: Press Release