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Randy DeFrehn Statement on Composite Plan Discussion Draft

WASHINGTON, D.C. – Today, following the introduction of a discussion draft bill to authorize a new and innovative multiemployer benefit plan design called a Composite Plan, Randy G. DeFrehn, Executive Director of the National Coordinating Committee for Multiemployer Plans issued the following statement:

“Chairman John Kline has made significant headway to address the long-term needs of the multiemployer pension system today. This discussion draft moves the legislative process forward while also providing a roadmap for making much-needed multiemployer pension Composite Plans a reality. This draft represents years of hard work on behalf of the Committee and all multiemployer pension stakeholders. We look forward to working with the Committee in a bipartisan fashion to pass this legislation this year.”

 Composite Plans are retirement savings plans for multiemployer pensions that draw from the best elements of defined benefit plans and defined contribution plans. These plans bridge the gap between 401(k) plans and the current defined benefit system but still offer reliable lifetime retirement income.  Composite Plans combine the lifetime income payments of defined benefit plans and pool longevity risk thereby paying higher benefits than would typically be paid by defined contribution plans, while maintaining predictable cost structure of defined contribution plans. Employers benefit from predictability and the elimination of wildly fluctuating contribution obligations. The 2013 report identifying long-term multiemployer pension reforms, Solutions not Bailouts, called for the development of new plan designs in order to provide pension funds with additional voluntary options for multiemployer pension plans that would strengthen the system, provide a lifetime benefit for employees, would require no government funding, and provide a much needed incentive for employers to stay in the system.

 About the Partnership for Multiemployer Retirement Security

The Partnership for Multiemployer Retirement Security was formed in February 2013 with the release of “Solutions not Bailouts: A Comprehensive Plan from Business and Labor to Safeguard Multiemployer Retirement Security, Protect Taxpayers and Spur Economic Growth.” The recommendations in the plan were developed by the National Coordinating Committee for Multiemployer Plan’s Retirement Security Review Commission over a period of 18 months.  The Commission studied the challenges facing the multiemployer pension system and designed a series of recommendations that safeguard retirement security and specifically address the challenges facing multiemployer plans. Passage of this remaining aspect of the comprehensive pension reform proposal from business and labor will ensure that multiemployer plans continue their decades-long mission of providing cost-effective and reliable retirement benefits to millions of working class Americans while protecting taxpayers from risk.  Learn more at: www.solutionsnotbailouts.com

 
Posted 14:30PM on September 14 2016 by Jessica
Categories: Press Release