RS Plan Not Affected by Multiemployer Legislation

The 2014 Continuing Resolution and Omnibus Spending Bill contains provisions allowing union/multiemployer plans to reduce previously guaranteed pension benefits for retirees in certain situations. These rules were put in place by Congress because of the precarious funding level of some of those plans.

Late last month, the Central States Pension Fund, a multiemployer plan that administers retirement benefits for some Teamster truck operators, filed notice with the Department of Labor that it was going to cut some retiree benefits under the new law. The fund’s action was widely reported in the media.

Because these news reports might spark participant concerns, it is important to reiterate that the Retirement Security (RS) and 401(k) Pension Plans are multiple employer plans, not multiemployer plans. While the names are similar, the rules and regulations for each are completely different. The provisions allowing multiemployer plans to reduce benefits do not apply to the RS and 401(k) Plans and in no way affect them.

Questions
If you have any questions on this legislation and any effect on the RS Plan, please contact your local field representative.