"Some [multiemployer] pension plans ... are setting up two sets of numbers and interest rate assumptions: [1] an extremely low rate using the PBGC long-term rate of about 3.30 percent, and [2] a higher assumed rate of return of 7 to 8 percent based on historical investment returns and future projections.... [This] allows these plans to report a higher funding ratio of assets to plan liabilities, but also to maximize the withdrawal liability for the employers.... The plans are not required to notify the employers prior to or even after interest rate changes are made."

MORE >>