The construction industry funds more than 40 percent of multi-employer plans nationwide, providing portability for workers as they move to different jobsites and new employers. With the current maximum deducibility limit at 100 percent, it's impossible to create sufficient savings to protect plans in the event of a downturn in the market. This legislation increases the deductibility limit to 140 percent of current liability, allowing plans to save more for future retirees and avoid future funding shortfalls.
AGC supports provisions in the bill that demand that plans improve their funded status in order to ensure that they are always fully funded. For plans whose funded percentage is less than 80 percent, trustees will now be required to put together a schedule to improve their plan over a 10-year period, as well as notify plan participants. These two new requirements will ensure plan solvency by guaranteeing that all stakeholders are involved in decisions impacting the solvency of their plans.
Finally, and most critically, the pension bill includes the authority for critical-status plans to protect normal retirement benefits by collecting extra contributions from employers on an emergency basis and, if necessary, modifying ancillary, non-core benefits for certain participants.
BOMAG Americas names John Hood to sales manager for paving and milling products.
Cygnus Business Media, publishers of Asphalt Contractor, appoints Sam Simon associate editor of ForConstructionPros.com.