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More than 1,300 U.S. Businesses Call For Multiemployer Pension Reform

More than 1,300 U.S. Businesses Call For Multiemployer Pension Reform

Employers Nationwide Urge Their Senators to Give Multiemployer Pension Trustees New Tools to Boost Solvency, Preserve Benefits

Washington, DC: With time running out on the multiemployer system that provides retirement benefits to millions of American workers, businesses across the country are pressing Congress to enact needed reforms to allow these pensions to preserve benefits well into the future.

Leaders and business owners from more than 1,300 companies in Illinois, New England, New York, Oregon and Washington State signed onto letters to their senators to encourage them to help fix the multiemployer pension system this year. These businesses and others have partnered with labor unions to craft a proposal that would preserve benefits, improve solvency, and do it without a taxpayer bailout.  Their proposal – called Solutions Not Bailouts – asks Congress not for taxpayer dollars to bailout the system, but for needed reforms that would give them the tools necessary to modernize these plans, to stave off insolvency and ensure long-term retirement security. To see the letters sent to the respective Senators, click here.

The business leaders stressed the urgency of acting quickly:

“The longer we wait to take action, the more severe the impact on retirees and workers in the plans in the worst financial shape will become. The longer we wait, the heavier the burden will become on employers struggling to fund and extend these pension plans. Without action, the system will become weaker, retirement benefits will become endangered and retirement security for millions of Americans will be threatened.”

More than 26,600 employers across these states participate in multiemployer pension plans that pay out approximately $3.3 billion in monthly benefits to more than 384,000 retirees each year.  Nationwide, multiemployer pensions have an estimated economic impact of $38 billion annually in local economic activity, job creation and small business growth. There are tens of thousands of contributing employers and about four million retirees who rely on multiemployer pensions for retirement.

Many of these plans are in jeopardy and face the potential of insolvency. Making matters worse, the federal backstop for multiemployer pensions is in increasingly precarious financial shape. The Solutions Not Bailouts proposal helps troubled plans avoid insolvency, puts pension plans recovering from the economic downturn on firmer financial footing, and allows employers to stay in business and continue to participate. It also protects taxpayers by avoiding a massive taxpayer funded bailout that could cost billions.

The measures in the Solutions Not Bailouts proposal are voluntary, and since all plan decisions require buy-in from both labor and management, no decisions can be made without both sides agreeing that they are in the best interest of plan participants.

 

About the Partnership for Multiemployer Retirement Security

The Partnership for Multiemployer Retirement Security, a joint initiative of business and labor, 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 11:25AM on December 04 2014 by Jessica
Categories: Press Release