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House approves bill to allow multiemployer pension plan benefit cuts
Trustees of financially distressed multiemployer pension plans would be allowed to cut participants’ benefits to prevent the plans from becoming insolvent under legislation narrowly approved by the House of Representatives Thursday night.
Benefits could be cut if a plan is projected to become insolvent during a current plan year or any of the next 14 years, or any of the next 19 years if the plan’s ratio of inactive participants to active participants exceeds 2-to-1 or if the plan is less than 80% funded.
