After passing the NECA-supported Multiemployer Pension Reform Act of 2014, Congressional leaders pledged that there was still work to do to help bring greater solvency to the multiemployer retirement system. The next step Congress must take is authorizing legislation that would approve the use of a new hybrid plan design known as “Composite Plans.” These plans are a new and innovative approach to providing retirement benefits to multiemployer plan participants and have two objectives: 1) provide adequate and reliable income in retirement to employees, and 2) ensure that sponsoring employers are not exposed to financial risks that jeopardize the viability of their businesses. Since composite plans are neither defined benefit nor defined contribution plans, Congress will need to authorize their use before companies can begin to offer them to their employees.
In order to educate Members of Congress on the many benefits Composite Plans offer, NECA and the members of the Construction Employers for Responsible Pension Reform coalition have developed a White Paper entitled, “Composite Plans: A New Approach to Modernizing Multiemployer Retirement Benefits.” This White Paper will be distributed on Capitol Hill and is available for download to NECA Members and Chapters who wish to review and distribute the White Paper to their constituencies.
Download Composite Plan White Paper