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Questions and Answers for Facilitated Merger

Laborers International Union of North America Local 1000 Pension Fund Into Laborers Local 235 Pension Fund

The Multiemployer Pension Reform Act of 2014 (MPRA) became law in December 2014. Under MPRA, Congress established new options for trustees of multiemployer plans that will potentially run out of money. Below you’ll find facilitated merger information for the Laborers International Union of North America Local 1000 Pension Fund Into Laborers Local 235 Pension Fund.

What is a facilitated merger?

PBGC has the authority under current law to provide financial assistance to help a critical and declining status plan (generally, a plan projected to run out of money within 20 years) merge with a healthier plan, to give the troubled plan a chance to remain solvent. This will help preserve participants’ benefits, which may be reduced absent a merger.

Does the merger save the Laborers International Union of North America Local 1000 Pension Fund? Does the merger put the Laborers Local 235 Pension Fund at risk?

The merger will help to protect the pension benefits of over 400 participants of the Laborers International Union of North America Local 1000 Pension Fund. Without the merger, the Local 1000 Plan was projected to become insolvent in 2026. The merger will not affect participants and beneficiaries of the Laborers Local 235 Pension Fund.

For plan information, contact the Laborers Local 235 Pension Fund at:
Phone: (914) 592-3331

Does this agreement hurt PBGC?

No. By law, PBGC may not approve a facilitated merger that harms the solvency of the agency’s Multiemployer Program. PBGC approved this merger after determining that the merger reduces PBGC’s expected long-term loss with respect to the Local 1000 Plan, and that providing financial assistance to the merged plan will not impair the agency’s ability to meet its existing financial assistance obligations to other multiemployer plans.

Will participants’ benefits be cut as a result of the plan merger?

No, the merger of the two pension plans will not affect the earned benefits of participants and beneficiaries of either plan. 

For plan information, contact the Laborers Local 235 Pension Fund at:
Phone: (914) 592-3331

Whom should I contact for more information?

For plan information, contact the Laborers Local 235 Pension Fund at:
Phone: (914) 592-3331