The nation's multiemployer defined benefit pension plans have provided a secure retirement to America's working families for generations. Since 1946, NECA contractors have contributed to the National Electrical Benefit Fund (NEBF), a viable pension plan which benefits participants, retirees and surviving spouses. This plan serves over 502,000 participating individuals and has over 8,000 contributing employers, making it the fourth largest Taft-Hartley Pension Plan in the United States. In addition to NEBF, NECA contractors contribute to 123 local pension plans covering over 800,000 participants and beneficiaries in the construction industry, with total assets of roughly $30 billion.
The NECA-supported Multiemployer Pension Reform Act of 2014 (MPRA) included several major reforms and brought about a joint effort between management and labor. Unfortunately, the law did not include the important recommendation of creating "composite" benefit plans which are a hybrid between a defined contribution and a defined benefit plan. Allowing plans to transition to composite plan designs is necessary to provide a secure retirement benefit for the electrical construction industry's workers and to protect the fiscal viability of employers that contribute to NECA multiemployer pension plans.
Tell your Member of Congress to authorize composite plan design for multiemployer pension plans!