American Federation of Musicians and Employers' Pension Fund (AFM-EPF)
AFM-EPF is a defined benefit multi-employer pension plan for members of the American Federation of Musicians. Defined Benefit Pensions are becoming rare*. Pensions have endured a lot of sturm und drang in recent history. AFM-EPF is no exception. Retirement Heist: How Companies Plunder and Profit from the Nest Eggs of American Workers by Ellen E. Schultz explains why. A multi-employer plan would appear to be tougher to rob.
The 2000 "Dot Com Bubble Burst" and 2007-8 “Global Financial Crisis”** hit many pension plans with a devastating one-two punch. AFM-EPF was forced to reduce benefits and increase employer contributions to weather the storm. This has impacted younger members, with more recent work history, harder. The "why" of this is complex, but it may impact the future of AFM-EPF. From my admittedly biased point of view, this is fair. Younger folk have more time to adapt than superannuated geezers such as my self – do NOT fail to do so!
Fortunately, the American Rescue Plan Act of 2021 (ARPA) included provisions that saved the day for many pensions, including AFM-EPF. Pending another catastrophic financial crisis, AFM-EPF is "projected to be able to pay benefits and administrative expenses through 2051, without reductions to participants' benefits." I am grateful.
This explains how AFM-EPF works pretty well: Summary Plan Description.
*As to why they're rare, one could read Retirement Heist.
**For insight into the Global Financial Crisis, one could watch The Big Short.
The 2000 "Dot Com Bubble Burst" and 2007-8 “Global Financial Crisis”** hit many pension plans with a devastating one-two punch. AFM-EPF was forced to reduce benefits and increase employer contributions to weather the storm. This has impacted younger members, with more recent work history, harder. The "why" of this is complex, but it may impact the future of AFM-EPF. From my admittedly biased point of view, this is fair. Younger folk have more time to adapt than superannuated geezers such as my self – do NOT fail to do so!
Fortunately, the American Rescue Plan Act of 2021 (ARPA) included provisions that saved the day for many pensions, including AFM-EPF. Pending another catastrophic financial crisis, AFM-EPF is "projected to be able to pay benefits and administrative expenses through 2051, without reductions to participants' benefits." I am grateful.
This explains how AFM-EPF works pretty well: Summary Plan Description.
*As to why they're rare, one could read Retirement Heist.
**For insight into the Global Financial Crisis, one could watch The Big Short.