My story today digs into the pension fund sponsored by a union striking at five Connecticut nursing homes. In their 2010 report to members, the fund's trustees said it was 111 percent funded. The same year an IRS-mandated calculation put it at 54 percent funded. So which is it?
Multiemployer pensions can use any discount rate they want to determine their liabilities, much like public sector pensions, leaving them only 52 percent funded as a group, according to a Credit Suisse study using realistic discount rates.