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Washington Post: Multiemployer Pension Reform is “Fair and Responsible”

Washington Post: Multiemployer Pension Reform is “Fair and Responsible”

Solutions Not Bailouts Proposal’s Inclusion in the Bipartisan “CRomnibus” Will Preserve Retirement Security for 10.5 Million Multiemployer Plan Participants
 

WASHINGTON, D.C. – The Washington Post editorial board today deemed a bipartisan proposal to reform multiemployer pensions and preserve benefits for the long term a “fair and responsible” provision included in the “CRomnibus” spending bill. The Post writes:

In this mess of a mega-bill, there was one piece of bipartisan farsightedness. Reps. John Kline (R-Minn.) and George Miller (D-Calif.) crafted a provision that should help ensure the sustainability of large, decreasingly solvent multiemployer union pension funds that might otherwise fail and confront Congress with a choice between bailing them out and leaving retirees with nothing. The measure, which allows pensions to trim existing benefits, was the least painful option — as several key labor unions that supported it recognized. Looking at the bill as a whole, we’d call this fair and responsible provision the exception that proves the rule.”

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. Solutions Not Bailouts will provide higher ultimate benefit to pensioners than they will receive under existing law if no changes are enacted, it will help troubled plans avoid insolvency, put pension plans recovering from the economic downturn on firmer financial footing, and allow employers to stay in business and continue to participate. It also protects taxpayers by avoiding a massive taxpayer funded bailout that could cost billions.

Click here to read the full editorial.

About the Partnership for Multiemployer Retirement SecurityThe 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 13:58PM on December 11 2014 by Jessica
Categories: Press Release