BRIEF

The MPS “Action Plan” - an Analysis
Scott Ballantyne, Local 802 and Tom Calderaro, Local 47

June 19, 2018

Abstract

A proposal to improve the situation of AFM-EPF plan participants by the MPS’ actuary, Tom Lowman, is analyzed. The plan involves increased contributions, a three-year moratorium on benefit cuts and proposed changes to the board of trustees. We discover that the current behavior of the fund is already very close to that asked for by MPS, making this a lot of sound and fury, signifying nothing. Increasing contributions is a standard recommendation and not a bad one, but does not come for free to participants. We believe the moratorium is fiscally imprudent and could easily make our situation worse. The proposed changes to the board are shallow and do not deal with the governance issues shared by all multi-employer funds.

1 Who is the MPS?
2 What is the MPS Plan?
 2.1 First Three Years:
 2.2 Fourth Year:
 2.3 Scenarios
3 Discussion
4 Our Recommendations
5 Trustee Recommendations

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