Do Contractors Still Issue Pension Plans
Do Contractors Still Issue Pension
Plans
The Davis-Bacon Act of 1931 set the stage for contractors
needing to have pension plans so they can work on any federal government
construction project or federal assisted construction project. The Davis-Bacon Act requires any contractor or subcontractor performing work on a federal
government construction project or federally assisted construction project over
$2,000, to pay their workers on-site not less than the local prevailing wages
and fringe benefits paid on similar projects as determined by the Secretary of
Labor. Pension plans would fall under
the definition of fringe benefits.
Pensions
can be difficult to find in the private sector with only 21 percent of all
private-sector workers being offered traditional pension in 2007. There is a
direct correlation with the larger the companies who employ more workers have a
higher the percent of offering traditional pension plans. Some small employers band together to form
large multiemployer pension arrangements.
A Union card could be your ticket to retirement in the private
sector. The need for Multiemployer
Pension Plans is here and Legislation can affect those plans.
There are a number
of Legislative issues being discussed about multiemployer pension plans. The National Issues Conference - Campaign for
Quality Construction was co-sponsored by SMACNA, FCA, ICE, MCAA, NEA, and
NECA. The conference guest speaker
talked about an opportunity to begin an
education process
with lawmakers on how union contractors work and remain competitive in the private and public sectors while not
burdening the federal government. There
is a need for educating what is out there and what is needed. There is also a
need for pension relief as the economy has slumped in the past years. Multi-employer Pension Reform has been at the
forefront of legislative concerns for the past 5 years on QCA National Issues
Conference Issue Sheets.
SMACNA
has the first construction industry trade association with a full time office
on Capitol Hill. They are playing an
active role in shaping legislation affecting the sheet metal industry which
affects the construction industry. They
have a number of Pension Funding relief initiatives and talking points.
Resources, Learn more about Prevailing Wage and Pensions at Davis Bacon.org.
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