The multiemployer pension system allows employers of all sizes in the electrical construction industry, to pool their resources and help provide a secure retirement for their workers in old age. But for employers to maintain and grow these benefits for their employees, they need to continually grow their business. Legislation allowing this composite plan option provides the keys to unlocking this growth and prosperity for businesses and employees alike and will strengthen and modernize the multiemployer system for the future.
Key Features of the Composite Pension Plans:
The Composite Plan model is designed to strengthen workers' retirement security and offer greater certainty and stability to employers participating in the multiemployer system. The plan authorizes the creation of a new type of retirement plan that combines key features of defined benefit and defined contribution plans while protecting traditional multiemployer pensions.
A new study finds that composite retirement plans would have fared better during the coronavirus pandemic and related market declines than traditional defined-benefit multi-employer plans, allowing participants to receive higher benefits and attracting more employer participants. The study makes it clear that employees and employers stand to benefit once Congress authorizes the use of composite plans.