On Jan. 14, 2022, the Board of Trustees (“Trustees”) of the International Union of Painters and Allied Trades Industry Pension Fund (the “Pension Fund”) proactively elected to enter the “Red Zone” (critical status under the Pension Protection Act or “PPA”) after looking at the options to improve the long-term stability of the Pension Fund.
Trustees on both sides of the table recognize the need for structural changes to the Pension Fund to combat challenges and to solve some of the issues that the Funding Improvement Plan could not. By entering the Red Zone now, the Trustees are able to use legal and actuarial tools not available before to create a different and more stable path going forward.
On the same day that the Trustees elected to enter the Red Zone, they also adopted a Rehabilitation Plan to restructure the underlying design of the Pension Fund using tools available under the law all while staying in line with industry standards. The Rehabilitation Plan replaces the Funding Improvement Plan which has been in place for some time now.
Download the IPAT Pension Rehabilitation Plan Packet for Employers to learn more about how these changes will affect contributing employers and plan participants.
Pension, Rehabilitation, Pension Protection Act (PPA), Annual Funding Notice, Benefits, Retirement, Funding Improvement Plan, FIP2