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Business-Labor Statement on PBGC Annual Report

 

Business-Labor Statement on PBGC Annual Report

Report Shows Multiemployer Deficits, Highlights Urgency for Congress to Act on Business-Labor-Created and -Supported Solutions Not Bailouts Proposal

 

WASHINGTON, D.C. - The Pension Benefit Guaranty Corporation (PBGC) today released its annual report, highlighting the data that shows the multiemployer program deficit has increased more than 5 times over previous projections. The Partnership for Multiemployer Retirement Security, a business and labor initiative supporting multiemployer pension reforms, issued the following statement:

 

“The PBGC annual report underscores the urgency for Congress to act in the near term on Solutions Not Bailouts to provide retirement security for millions and economic security for businesses involved in multiemployer pensions. This proposal gives pension plans and stakeholders the tools necessary to modernize, thrive and for the small, but significant minority of multiemployer plans facing insolvency, to address structural problems and, hopefully, recover.  The PBGC report, showing the deficit and insufficient resources in the multiemployer fund, underscores that time is of the essence and that fast action by Congress could mean the difference between insolvency and solvency for many of these at-risk plans.

 

“For example, one of the most troubled plans, the Central States Teamsters pension plan, has an exposure cost pegged by the PBGC at over $20 billion, but with the tools contained in the Solutions Not Bailouts proposal, their actuaries project that the plan will survive and participants will receive approximately $72 billion in benefits over the next 50 years.  Without action, the Central States plan will pay out approximately $28 billion over the next 12 years before it is terminated and becomes a ward of the PBGC.

 

“It can’t be clearer which option is best for the more than 400,000 participants of that plan and for hundreds of thousands of other participants in similarly situated plans. It is clear that saving Central States would go a long way to reducing the PBGC’s estimated deficit.  And the same can be said for the thousands of other retirees, workers and employers involved in other at-risk plans. Congress needs to act now, before the bill gets too big for anyone to pay.”

 

About the Partnership for Multiemployer Retirement Security

The Partnership for Multiemployer Retirement Security was formed in February 2013 with the release of Solutions not Bailouts: A Comprehensive Plan from Business and Labor to Safeguard Multiemployer Retirement Security, Protect Taxpayers and Spur Economic Growth.” The recommendations in the plan were developed by the National Coordinating Committee for Multiemployer Plan’s Retirement Security Review Commission over a period of 18 months.  The Commission studied the challenges facing the multiemployer pension system and designed a series of recommendations that safeguard retirement security and specifically address the challenges facing multiemployer plans. This comprehensive plan from business and labor, if enacted, will ensure that multiemployer plans continue their decades-long mission of providing cost-effective and reliable retirement benefits to millions of working class Americans while protecting taxpayers from risk.  Learn more at: www.solutionsnotbailouts.com

 

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Posted 15:04PM on November 17 2014 by Jessica
Categories: Press Release