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Chairman Roe: Common ground can be found to aid multiemployer plans

By Ted Knutson, Financial Advisor Magazine

The leading Republican and Democrat on the House Education & The Workforce Committee’s pension subcommittee said Wednesday they want to see legislation allowing troubled union multiemployer pension plans to reduce benefits to prevent or delay them from running out of money.

Multiemployer plans are common in industries where union membership is typical and in industries where adults often work for more than one company in a year, such as trucking, groceries and mining.

With half of the 5 million workers covered by the plans are seen at risk, subcommittee Chairman David Roe (R-Tenn.) and Ranking Democrat Robert Andrews of New Jersey said cutting benefits is a bitter pill for the budgets of retirees that needs to be swallowed.

Roe said small benefit reductions now will prevent huge problem in the future. At the same time, Andrews said, cuts need to be fair and negotiated collectively.

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Posted 15:44PM on June 12 2013 by Jessica
Categories: Article