House passes multiemployer pension reform
Published: December 12, 2014 - Pensions & Investments
The House approved late Thursday a package of reforms available to struggling
multiemployer pension funds, as part of a congressional spending deal that the
Senate must vote on by Saturday.
The controversial package, which allows the most distressed multiemployer
plans to cut retiree benefits to prevent plans from becoming insolvent and
winding up at the Pension Benefit Guaranty Corp., also increases PBGC
multiemployer premiums to $26 per participant from $13.
Education and the Workforce Committee Chairman John Kline, R-Minn., and
ranking member George Miller, D-Calif., the bill's co-sponsors, said in a
statement that the changes will ghelp prevent the collapse of failing plans and
better protect workers' retirement security.h
The package also clarified a PBGC funding regulation for plan sponsors in the
process of shutting down operations. The change more narrowly defines when it
can be enforced.
But retiree groups decried allowing retirees' benefits to be cut. gIt is a
travesty that, in the year of the 40th anniversary of the landmark private
pension law, ERISA, the House has swept away a fundamental and sacred principle
of the law,h said Karen Friedman, Pension Rights Center executive vice
president. in a statement.