Options for Troubled Multiemployer Pension Plans in a Post-PPA World

Over the past two years, multiemployer pension plans have been challenged from two directions — they have had to learn to function under a very different set of funding rules under the Pension Protection Act of 2006 (PPA) while grappling with sharp investment losses and a severe economic slowdown. As a consequence, many trustees find themselves fighting an uphill battle to stabilize their multiemployer plans. This article focuses on the tools available to address the serious financial problems facing multiemployer pension plans now.