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Operating Engineers' Local 324, Defined Contribution Pension Plan
The Operating Engineers' Local 324 Defined Contribution Pension Plan provides retirement benefits to members of the International Union of Operating Engineers...
Operating Engineers' Local 324, Defined Contribution Pension Plan
The Operating Engineers' Local 324 Defined Contribution Pension Plan provides retirement benefits to members of the International Union of Operating Engineers Local 324, which represents heavy-equipment operators across Michigan. The fund is in critical status and is implementing a rehabilitation plan approved by its Joint Board of Trustees. Employer contributions flow in under collective bargaining agreements negotiated with trade associations including the Michigan Infrastructure & Transportation Association (MITA) and AGC Michigan. The fund allocates capital across multiple external managers and structures. Asset-class exposure includes commercial real estate via vehicle investments such as WaCap - O Real Estate Opportunity Fund VIII Feeder LLC, based in Seattle, and a direct relationship with PGIM Real Estate, based in Newark, New Jersey. In liquid alternatives, the plan has committed to the ABS Long/Short Strategies Fund, run out of Greenwich, Connecticut. The rehabilitation plan may constrain new commitments and shape the fund's risk budget as it aims to improve its funded status. The plan is governed by a Board of Trustees drawn jointly from union and employer representatives. Administration and investment policy sit with the Joint Board of Trustees, Operating Engineers Local 324. The fund does not maintain a separate management company or dedicated internal investment staff listed publicly; instead, it relies on its trustee-governed process to select and oversee external asset managers. No additional offices outside Troy, Michigan, have been identified through public disclosures. The fund's structural posture is shaped by its status as a collectively bargained Taft-Hartley plan under federal rehabilitation requirements. This creates a constraints-driven investment process distinct from a corporate or public defined-benefit plan. Contribution rates and benefit adjustments are subjects of ongoing negotiation, making the fund's asset allocation and liquidity profile responsive to both regulatory oversight and the bargaining cycles of Michigan's heavy-construction industry.
General information
Firm type
Pension Fund
Location
Region
North America
Country
United States
City
Troy
Corporate office
Troy, MI, United States
Sector focus
Frequently asked questions
What is the plan's current regulatory status and how does that constrain its investment activity?
The Operating Engineers' Local 324 Defined Contribution Pension Plan is in critical status and operates under a rehabilitation plan overseen by its Joint Board of Trustees. Critical status designation under federal law requires specific funding-improvement milestones and may limit the plan's ability to make certain types of new investments or require greater liquidity reserves. The rehabilitation plan can include adjustments to benefit levels and employer contribution rates, which directly shape the plan's cash-flow profile and risk tolerance.
Who sits on the Joint Board of Trustees and how are investment decisions made?
The Joint Board of Trustees includes both union-appointed representatives from Operating Engineers Local 324 and employer-appointed representatives from contributing construction-industry associations, including MITA and AGC Michigan. The full board is responsible for investment policy, manager selection, and plan administration. The plan does not publicly list an in-house chief investment officer or internal investment committee, suggesting trustee-level oversight of external manager relationships.
How is the plan funded and which employers contribute?
Funding comes from employer contributions required under collective bargaining agreements with the Michigan Infrastructure & Transportation Association, AGC Michigan, and other signatory contractors. Contribution levels are set through periodic labor negotiations and adjusted under the rehabilitation plan. This structure links the plan's cash inflows closely to Michigan's publicly funded infrastructure work and private commercial construction cycles.
What is the plan's approach to real estate investing?
The fund has disclosed commitments to commercial real estate vehicles, including a position in the WaCap - O Real Estate Opportunity Fund VIII Feeder LLC, a Seattle-based fund, and a separate allocation to PGIM Real Estate, managed from Newark, New Jersey. These commitments indicate a preference for institutional third-party managers rather than in-house direct property acquisition, consistent with the plan's trustee-governed, external-manager model.
What alternative investment strategies does the fund pursue outside of real estate?
Beyond real estate, the plan has committed to the ABS Long/Short Strategies Fund, a Greenwich, Connecticut-based hedge fund strategy. This suggests an allocation to liquid alternatives within the fund's broader portfolio, though the size and percentage allocation relative to total assets remain undisclosed. The presence of a long/short equity allocation is consistent with a plan seeking uncorrelated returns while managing liquidity under rehabilitation constraints.
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