There are approximately 1,400 multiemployer pension plans and nearly 10% are projected to become insolvent within the next 15 years. Plan insolvency will trigger a termination and the assessment of withdrawal liability.
Collectively, these plans have more than $30 billion in unfunded liabilities. These plans are now being designated as "critical and declining status" and have the authority to reduce benefits under the changes to the law made in 2014. While those benefit cuts, which require regulatory approval, may forestall insolvency for a while, they are not going to reduce any withdrawal liability over the next 10 years.
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