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NECA Legislative Top Three 8/9/19: Pessimistic Pension Projections Persist

Aug 08, 2019

1. PBGC Releases FY2018 Projections Report

On August 6, 2019, the Pension Benefit Guaranty Corporation (PBGC) released its FY 2018 Projections Report. The government agency, whose main goal is to insure the benefits of some 37 million Americans, around 11 million of which participate in the multiemployer pension system, remains in dire condition. The PBGC reported that absent a stark change in law or extreme increase in premiums, they are projected to run out of money by the end of fiscal year 2025. The PBGC currently provides assistance to 1.5 million people in failed plans and is funded through employer premiums and investment returns.

NECA’s Look Ahead: While the single employer portion of the PBGC remains well funded, the grim state of the multiemployer wing of the agency makes it clear that comprehensive reform to our pension structure is necessary.  A strict influx of cash will likely not be enough to resurrect the failing agency or reinvigorate the drastic attrition rates of employers and plan participants in the multiemployer system. NECA continues to encourage lawmakers and agency professionals to recognize the benefits of including composite plan design in any comprehensive plan proposed as a fix to the pension issue. We recognize the need to address the challenges of red zone plans which make up about eight percent of the system but believe it would be short sighted to remedy these ailments while not creating a lasting solution for the future of our industry.

2. Thirty-Four Members of Congress Support Construction Industry Exemption from IRAPs

This past week, NECA worked with members of Congress to send a letter to the Trump Administration in support of the Administration’s Construction Industry Exclusion from the Department of Labor (DOL) Notice of Proposed Rule Making (NPRM) for the creation of Industry Recognized Apprenticeship Programs (IRAPs).

NECA’s Look Ahead: NECA thanks the 34 members of Congress for their support in reaching out to President Trump in support of our exemption. NECA continues to urge our contractors, their employees, NECA chapters, and NECA employees make their voices heard on or before August 26, 2019, to ensure this tentative exclusion does not fall through.

3. Register Today for the NECA NextGen Fly-In—Capped at 25 Attendees! 

If YOU or someone in your company are an emerging leader ready to advocate for the electrical contracting industry, join us in Washington, D.C. on October 16-17, 2019 for the NECA NextGen Fly-In! This annual meeting is the premiere legislative conference for the next generation of electrical contractors and emerging company leaders to learn about the top issues affecting the industry and to meet the leaders who are working to provide real solutions.

NECA’s Look Ahead: This conference is about policy, not partisanship. Accordingly, leading members from both sides of the political aisle will be on hand to brief participants on the latest happenings on Capitol Hill and to engage in robust policy discussions to ensure that YOUR voice is heard during the policy making process. Register Today