Pension committee must deliver on retirement promise

Pension committee must deliver on retirement promise
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Years of hard work by Teamsters, retirees and other unions to reform the faltering multiemployer pension system finally are paying off. Late last month, congressional leaders announced the members of a bipartisan congressional pension committee, tasked with finding a solution to the nation’s looming pension crisis by this November, and the panel met for the first time on Wednesday.

It’s not a moment too soon. There are about 1.5 million retirees in desperate need of quick action to save the retirement nest eggs they spent decades contributing to, on the premise they would be financial secure in their golden years. There also are hundreds of thousands of workers who are enrolled in these pension plans who deserve assistance, too.

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As it stands, there are about 200 multiemployer plans across the country — including the Teamsters’ Central States Pension Fund — that are in danger of failing. The House-Senate Joint Select Committee, chaired by pension reform advocate Sen. Sherrod BrownSherrod Campbell BrownTrump pick to face grilling over family separations On The Money: Commerce to review uranium imports | Lawmakers urge Trump not to impose auto tariffs | White House wants steeper cuts to EPA funding | Google hit with massive B fine Congress won’t stop Trump’s trade assault MORE (D-Ohio), needs to find a vehicle that will deliver for these hard-working Americans who are paying, or have paid, into the pension pool and have played by the rules all their lives.

 

Luckily, the panel’s 16 members don’t have to look far to find a vehicle that would fit the bill. This union supports the passage of the Butch Lewis Act of 2017 (H.R. 4444/S. 2147), which has gained bipartisan support since its introduction in Congress late last year by Sen. Brown and Rep. Richard NealRichard Edmund NealTop Dems urge Trump officials to reverse suspension of ObamaCare payments Overnight Health Care: Dem demands details on Trump-Pfizer pricing deal | Why both sides agree nominee could shift high court to right on abortion | DEA gets more powers to limit opioid production Feehery: Crowley lost because he’s Irish MORE (D-Mass.).

Republicans such as Reps. Peter King and Dan Donovan of New York, Chris SmithChristopher (Chris) Henry SmithWe should allow all taxpayers to deduct charitable contributions AEI: GOP tax law will reduce charitable giving by .2 billion The progressive blue wave is crashing and burning in 2018 MORE, Frank LoBiondoFrank Alo LoBiondoGOP campaign arm withdraws support from NJ House candidate who made racist statements GOP runs into Trump tax law in New Jersey Overnight Defense: VA pick breezes through confirmation hearing | House votes to move on defense bill negotiations | Senate bill would set 'stringent' oversight on North Korea talks MORE, and Tom MacArthurThomas (Tom) Charles MacArthurGOP runs into Trump tax law in New Jersey Election Countdown: Family separation policy may haunt GOP in November | Why Republican candidates are bracing for surprises | House Dems rake in record May haul | 'Dumpster fire' ad goes viral Key Republican says House taking targeted approach to combating opioid epidemic MORE of New Jersey, Brian FitzpatrickBrian K. FitzpatrickGOP group hits Pennsylvania Dem over foundation donations Overnight Health Care: Trump officials want more time to reunite families | Washington braces for Supreme Court pick | Nebraska could be next state to vote on Medicaid expansion Ryan-aligned PAC launches ads touting House-passed opioid bills MORE and Ryan CostelloRyan Anthony CostellloRetiring GOP lawmaker slams Trump: Integrity of our democracy 'more sacred' than partisanship Dem, GOP groups prepare spending blitz for midterms Republicans top Dems at charity golf game MORE of Pennsylvania, and Kevin CramerKevin John CramerSenate Dems build huge cash edge in battlegrounds The Hill's Morning Report — Trump denigrates NATO allies, floats 4 percent solution Supreme Court vacancy throws Senate battle into chaos MORE of North Dakota and Don YoungDonald (Don) Edwin YoungOvernight Energy: New EPA head looks to reassure staff | New round of ex-Pruitt staffers leave | House votes to overhaul fisheries law | Trump rips Germany for pipeline deal with Russia House votes to overhaul fishery management law Bipartisan solution is hooked on facts, not fiction MORE of Alaska understand the value of the bill and should be lauded for supporting this legislation. The measure would boost financially-troubled multiemployer pensions so they don’t fail. It would create an agency under the Treasury Department that would sell bonds in the open market to large investors such as financial firms.

The agency, the Pension Rehabilitation Administration (PRA), would then lend money from the sale of the bonds to the financially-troubled pension plans. Plans that are deemed “critical and declining,” as well as recently insolvent but non-terminated plans and those that have suspended benefits, would be eligible to apply for the program.   

Pension plans borrowing from PRA would be required to set aside the loan proceeds in separate, safe investments such as annuities or bonds that match the pension payments for retirees. For those plans needing additional help to meet retiree obligations, the Pension Benefit Guaranty Corporation would be available to make up the difference. Those applying for loans to the PRA — which would be charged with approving all loans before they could be issued — would have to submit detailed financial projections. And, pension plans that have borrowed money would have to submit reports every three years to the PRA to show that the loans are working.

Last December, Teamsters were among the hundreds of union members who came to Capitol Hill to rally in support of the Butch Lewis Act. There, they joined Senate Democratic Leader Chuck SchumerCharles (Chuck) Ellis SchumerDemocrats slam Trump for considering Putin’s ’absurd’ request to question Americans Judge Kavanaugh confounds the left This week: GOP mulls vote on ‘abolish ICE’ legislation MORE (N.Y.), House Democratic Leader Nancy PelosiNancy Patricia D'Alesandro PelosiWho will be the ‘bridge’ for the Democrats? Wife of Papadopoulos interviews with House Intel Dems House backs resolution expressing support for ICE MORE (Calif.), Sen. Brown, Rep. Neal and others to push for the legislation. Retirees were on hand to share their stories.

Mike Walden, a former truck driver and Teamster retiree from Akron, Ohio, recognized years ago that pensions such as the one he receives from the Central States were in dire straits. Now he is president of the National United Committee to Protect Pensions and chairman of the Northeast Ohio Committee to Protect Pensions.

He told those on hand that day that any cut in pensions would devastate the well-being of retirees and force many out of their homes and into a life that, at their advanced age, they cannot handle. “Many of us are old; we can’t go back to work because we’ve had joint replacements, or some of us have lost our eyesight. We have medications that wouldn’t allow us to drive the trucks or work in warehouses like we used to,” Walden said. “Many can’t afford their medications if you reduce their pensions. They’ll die.”

That is what is at stake in this battle for justice. These workers aren’t asking for a handout; they just want what is rightfully theirs. It’s time for the joint committee to get to work and endorse this legislation that will make retirees whole. They’ve waited long enough.

James P. Hoffa is general president of the International Brotherhood of Teamsters and one of the foremost authorities on union issues.