Jan 9, 2019
Press Release - Ways and Means Committee, Democrats
WASHINGTON, DC – Today, Ways & Means Committee Chairman
Richard Neal (D-MA) introduced his first bill of the 116th Congress, the
Rehabilitation for Multiemployer Pensions Act, legislation to address the
nation’s worsening multiemployer pension crisis. Currently, there are about
1,400 multiemployer plans covering about 10 million people across the country.
Although multiemployer pension plans have been successful historically, today, a
significant number of these plans have funding problems, and many are almost
certain to run out of money. If they do, retirees, workers, and their families
would lose benefits earned over a lifetime of work, through no fault of their
own. Rep. Peter King (R-NY) is an original co-sponsor of the bipartisan
legislation, which has an additional four Democrat and four Republican
co-sponsors.
“We all know retirees with failing
multiemployer pension plans who now find themselves in a devastating predicament
– from truck drivers to autoworkers to ironworkers, these Americans live in all
of our communities,” said Chairman Neal. “In fact, there are
1.5 million Americans who are in plans that are quickly running out of money.
These are American workers who planned for their retirement, who year after year
chose to contribute to their pensions instead of taking a wage increase. Now,
after working for decades, their planned retirements may be taken away from
them. And taken away at a time when they no longer have time to prepare
for retirement because they’re now in retirement. There’s no time to waste in
addressing this crisis, and that’s why I’ve chosen to make this the first piece
of legislation I introduce as Chairman of the Ways & Means
Committee.”
The bill establishes the Pension Rehabilitation
Administration (PRA), a new agency within the Department of the Treasury,
authorized to issue bonds in order to finance loans to “critical and declining”
status multiemployer pension plans, plans that have suspended benefits, and some
recently insolvent plans currently receiving financial assistance from the
Pension Benefit Guaranty Corporation (PBGC). The PRA would be headed by a
Director, who will have a term of five years and be appointed by the
President.
“This is not a bailout. These plans would be
required by law to pay back the loans they receive from the PRA – the federal
government is simply backstopping the risk,” added Chairman
Neal. “Importantly, my bill does not allow for any cuts to the benefits
these workers and retirees earned through years on the job. Americans need our
help, and it’s time to answer that call.”
Additional original co-sponsors of the legislation are Rep. Bobby Scott
(D-VA), Rep. Don Young (R-AK), Rep. Debbie Dingell (D-MI), Rep. Chris Smith
(R-NJ), Rep. Donald Norcross (D-NJ), Rep. John Katko (R-NY), Rep. Marcy Kaptur
(D-OH), and Rep. Jeff Fortenberry (R-NE).
A summary of the bill
can be found HERE,
and full text of the legislation is available HERE.
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