Local 807 Labor-Management Pension Fund
The Pension Plan is a defined benefit plan, designed to pay you benefits at your retirement.
Pension Fund Update
The American Rescue Plan of 2021 (the “Rescue Plan”) was signed into law on March 11, 2021. The legislation includes relief for multiemployer defined benefit (DB) pension plans like ours that are in critical and declining status. Under the Rescue Plan, the federal government will make a one-time payment to eligible pension funds in an amount that should enable the funds to continue paying out benefits through 2051. This money is to be used only for benefits and fund expenses and will be invested in bonds that the government approves. Pension funds do not have to pay this money back.
Our Pension Fund will be eligible in 2023 to apply for payment under the Rescue Plan. We are working with our attorneys, actuaries and other plan professionals to carefully review the provisions of the legislation and other regulatory updates, to determine what it all means for our Plan. We are continuing to consider all available and reasonable options for saving our Fund.
This law gives us all hope. We have been calling on Washington to act on the pension crisis for years. This law is a good start and we welcome the relief that should keep our Pension Fund solvent for at least the next 30 years.
We plan to submit our application in 2023. According to the legislation, there is a prioritized group of plans that are facing immediate financial need that will be allowed to submit their applications first. Our application will follow the prioritized group. You can find out more about the program on the PBGC website.
We will keep you updated as we get more information and as we move forward to apply for relief under the Rescue Plan. We will provide updates on this website and in other communications to you.