A U.S. law enacted in December 2014 that allows financially troubled multiemployer pension plans to reduce promised retirement benefits — under a carefully regulated process — in order to keep the plan solvent.
The Kline–Miller Multiemployer Pension Reform Act of 2014 (commonly called MPRA) introduced an important change for certain U.S. pension funds. Before MPRA, pension benefits already earned — even those in pay status — could not be cut merely because a pension plan was underfunded. MPRA changed that. Under this law, multiemployer pension plans facing serious financial trouble may apply to reduce benefits, subject to strict rules and oversight. Who MPRA applies to — what is a multiemployer plan
A “multiemployer plan” is a pension plan created through a collective agreement between a union (or unions) and two or more unrelated employers, usually in the same industry — for example, construction, transportation, or hospitality.
MPRA does not affect single‑employer plans. If you’re participating in a single-employer pension plan, MPRA doesn’t apply to you.
When MPRA allows benefit reductions
Not all multiemployer plans can reduce benefits. Only those plans designated as “critical and declining” — meaning they are projected to run out of money within a specified time frame (typically 15 years, or up to 20 years in some cases) — can seek to cut benefits.
To initiate reductions, the plan’s board of trustees must submit an application to the U.S. Department of the Treasury, along with the overseeing agencies (the Pension Benefit Guaranty Corporation (PBGC) and the U.S. Department of Labor), showing that benefit cuts are needed to restore solvency.
Once approved, the proposal is sent to participants and beneficiaries. They receive a detailed estimate of how their benefits would change and — importantly — get the opportunity to vote on the plan. If a majority votes against the reductions, in many cases the plan cannot cut benefits.
Limits and Protections under MPRA
Even when a plan qualifies for cuts under MPRA, the law imposes limits to protect the most vulnerable retirees:
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Benefits cannot be reduced for retirees age 80 or older on the effective date of the reduction.
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Reduction must aim to bring the plan back to solvency — i.e. cannot be arbitrary or open‑ended.
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The cut must not reduce benefits below a threshold tied to what PBGC would guarantee under its multiemployer insurance program (plus a small margin).
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Trustees are expected to consider other alternatives first, such as merging with a healthier plan or seeking financial help. Benefit reductions are treated as a last resort.
Example — How MPRA played out in real life
One of the largest multiemployer plans, the Central States, Southeast and Southwest Areas Pension Plan (Central States), applied under MPRA for benefit reductions as its assets fell short of obligations.
That meant retirees and workers covered by Central States — including individuals receiving pension payments and those counting on future benefits — faced the possibility of reductions. This helps illustrate how MPRA can affect both current pensioners and future retirees under distressed multiemployer plans.
Why MPRA was passed
Pension experts, unions, employers, and lawmakers recognized that many multiemployer pension plans were under-funded — essentially promising more retirement benefits than they were likely to be able to pay. Without intervention, some plans faced collapse, which could leave retirees with only the modest benefit guaranteed by PBGC’s multiemployer insurance (much lower than promised benefits).
MPRA aimed to provide a controlled, legal mechanism to help troubled plans avoid insolvency — by cutting obligations in an orderly fashion rather than waiting for a catastrophic collapse that could hurt all participants.
What this means if you’re a participant
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If you are in a single-employer pension plan: MPRA does not apply — your benefits are not subject to benefit suspensions under this law.
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If you are in a multiemployer plan: you should check with your union or plan administrators to see if your plan is classified as “critical and declining.” If so, the trustees might request benefit reductions under MPRA.
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Keep an eye out for official notices — law requires that participants be informed, given benefit estimates and a chance to vote.
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Even with MPRA, some protections remain — particularly for older retirees.
In short, the Kline–Miller Multiemployer Pension Reform Act of 2014 — MPRA — established a framework to help financially distressed multiemployer pension plans survive by permitting, under tightly regulated conditions, reductions of promised benefits. While reductions are a serious concern for participants, the law also builds in protections and democratic safeguards.
If you’re covered by a multiemployer plan, it’s wise to stay informed — know your plan’s funding status, review any notices you receive, and understand your rights under MPRA.
Meta description:
Learn what the Kline–Miller Multiemployer Pension Reform Act of 2014 (MPRA) is, how it works, and what it means for retirees and pension participants.
Please take a look at this as well:
What is a Multiemployer Plan? – Simple and Easy Explanation
