The American Federation of Musicians and Employers’ Pension Fund (Fund) has faced financial difficulties since the global 2007-2008 recession. Similar to dozens of other pension plans, the Fund is now underfunded and will be unable to pay benefits at the level projected in the pre-recession financial market. The Fund’s history of financial struggles is available here. The Fund is in the process of evaluating various options to reduce a portion of participants’ benefits in order to remain financially solvent.
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Status Report—AFM Pension Fund
If you’ve been following the status of the American Federation of Musicians and Employers’ Pension Fund (AFM-EPF), you know it has been facing severe funding problems since the Great Recession, despite earning relatively good investment returns since then and receiving a significant contribution increase. As detailed more below, however, these have not been enough to “right the ship.” As a result, the trustees are preparing for a critical and declining certification in the spring and an application to the Treasury Department under the 2014 federal law known as “MPRA” for approval to reduce benefits to the extent necessary to remain solvent for the next 30 years.
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