Bill would increase the maximum deductibility limit to 140%
The Associated General Contractors of America (AGC) recently congratulated the House for introducing legislation that would increase the maximum deductibility limit to 140% of current liability. AGC CEO Stephen E. Sandherr said that the pension bill is especially beneficial to the construction industry because it’s the number one user of multi-employer pension plans.
In 2001 and 2002, AGC found that multi-employer pension funds were facing funding deficiencies because the maximum deducibility limit was 100%, and that it was difficult to create sufficient savings plans in the event of a downturn in the market. According to the AGC, the House proposal would allow the plans to save more for future retirees and avoid funding shortfalls in the future.
AGC has been working with the Multi-Employer Plan Coalition, a group of employers, unions, and trustees on the Taft-Hartley plans, to address the needs of multi-employer plans for the construction industry and beyond. The Coalition created a legislative proposal, presented it to Congress, and worked to ensure that the majority of its recommendations were a part of the House bill.