Defined benefit (DB) pension plans have historically been used as an effective human resources (HR) tool, enabling employers to attain desired objectives, such as attraction, retention, and orderly workflow patterns. However, pension plans can also be used as a strategic tool to help mitigate HR challenges during the COVID-19 pandemic.
In this brief, Milliman’s Ryan Rowland outlines several ideas for employers to consider in connection with their DB pension plans as well as caveats to be aware of as you evaluate your organization’s staffing needs during this crisis.
On November 20, 2019, Senators Charles E. Grassley and Lamar Alexander released a white paper and accompanying technical explanations describing their proposed Multiemployer Pension Recapitalization and Reform Plan, which is their strategy to address the projected insolvency of approximately 125 multiemployer pension plans and the projected failure of the Pension Benefit Guaranty Corporation (PBGC) multiemployer program, which is intended to backstop insolvent pension plans. This article by Milliman’s Ryan Rowland and Grant Camp summarizes key aspects of the proposed legislation.