U.S. Treasury Staff Will Recommend Denying Multi-Employer Pension Reform Act Application

Treasury has a deadline of August 11, 2020 to decide whether to approve or deny the application.

By: Aug. 05, 2020
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In December 2019, the American Federation of Musicians and Employers' Pension Fund (AFM-EPF, the Plan) filed an application with the U.S. Treasury Department to reduce benefits under the Multiemployer Pension Reform Act (MPRA) in an attempt to save the Plan and avoid insolvency. Treasury has a deadline of August 11, 2020 to decide whether to approve or deny the application.

Treasury Staff recently advised the AFM-EPF that it disagrees with two of the actuarial assumptions used in the application. On this basis, Treasury Staff will recommend that the Secretary of the Treasury deny the application.

Today, the AFM-EPF informed participants of Treasury Staff's decision. The Trustees strongly disagree with Treasury Staff's position on the two assumptions, and the Plan's actuaries stand firmly by all of the assumptions used in the application. Even more to the point, Treasury Staff is recommending denial despite the fact that that the AFM-EPF demonstrated the proposed benefit reduction would prevent the Plan from running out of money even if the Plan used the assumptions that Treasury Staff preferred.

Also today, the Trustees sent a letter to Treasury Secretary Steven Mnuchin conveying the reasons for their disagreement with Treasury Staff and asking him to overrule the expected Treasury Staff recommendation and not deny the application.

For more information, please follow the link below to view the communication that was sent to the Plan's participants: https://mailchi.mp/d7c92bdc9dcb/pension-fund-notes-690215

You can follow the link below to read the Trustees' letter to Secretary Mnuchin: https://mcusercontent.com/6dcebaf1419de2cd1c2280e66/files/fdce7615-fb07-4a4f-95fb-d3a3ca24cde5/AFM_EPF_Letter_to_Secretary_Mnuchin.pdf





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