COVID-19 to leave multiemployer pension system more distressed than ever

COVID-19’s impact goes beyond the market decline. Many industries are being hit hard by a sudden drop-off in industry activity, with concern that the recovery of normal operation could take several years, reducing the contributions coming into multiemployer pension plans. These impacts are a particular concern for mature plans (those with more benefit payments and expenses than contributions), and may have a long-lasting impact on plan funding. Without Congressional action or speedy market recovery, there will be another wave of plan failures. Lawmakers need to think carefully before providing solutions that further strain an already stressed system.