Is the Pension Healthy?

The Pension Protection Act of 2006 (PPA) set up a warning system for pension plans.

Green is healthy. That means it meets minimum funding standards.
Yellow is endangered. It means the trustees must fix the funding levels and show a plan of improvement.
Red is critical. That is not good news for anyone.

At the local level:

The Plumbers Local No 8 Pension plan was in the “endangered” zone in 2008 and 2009. The trustees have put a plan in place to bring the plan back to “healthy” in the future. This plan consists of increasing contributions which reduces the wages on the check while increasing the total cost of labor to the contractor. This makes us less competitive with non-union companies, thereby reducing hours worked.

Pipefitters Local 533 is currently green, or “healthy.”

At the national level:

The national pension has hit the “critically endangered” zone.

The UA recently sent a request for an increased contribution of 20 percent.

The UA made the request because it is required by law to create a plan to bring the pension back to healthy. Unfortunately, if there are not enough people working nationally, it will be extremely difficult to bring the pension back to that level.