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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 BrownPlaintiff and defendant from Obergefell v. Hodges unite to oppose Barrett's confirmation Congress must repeal tax breaks for the wealthy passed in CARES Act Democratic senators unveil bill to ban discrimination in financial services industry 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 NealDemocrats express concerns about IRS readiness for next year's filing season On The Money: Kudlow confident that Trump can 'round up' Senate GOP behind coronavirus relief deal | US deficit spikes to record .1T Top Democrat: Tax credit expansions must be in next coronavirus relief package MORE (D-Mass.).

Republicans such as Reps. Peter King and Dan Donovan of New York, Chris SmithChristopher (Chris) Henry SmithWoman tased, arrested for trespassing for not wearing mask at Ohio football game China sanctioning Rubio, Cruz in retaliatory move over Hong Kong China sanctions Cruz, Rubio, others over Xinjiang legislation MORE, Frank LoBiondoFrank Alo LoBiondoVan Drew wins GOP primary in New Jersey Amy Kennedy wins NJ primary to face GOP's Van Drew Stimulus price tag of .2T falls way short, some experts say MORE, and Tom MacArthurThomas (Tom) Charles MacArthurChamber-backed Democrats embrace endorsements in final stretch Republican David Richter wins NJ primary in race to challenge Rep. Andy Kim What to watch in New Jersey's primaries on Tuesday MORE of New Jersey, Brian FitzpatrickBrian K. FitzpatrickLawmakers urge IRS to get stimulus payments to domestic violence survivors Hopes for DC, Puerto Rico statehood rise Florida Democrat introduces bill to recognize Puerto Rico statehood referendum MORE and Ryan CostelloRyan Anthony CostellloBottom Line Trump struggles to stay on script, frustrating GOP again Bottom line MORE of Pennsylvania, and Kevin CramerKevin John CramerGOP cool to White House's .6T coronavirus price tag Romney calls first Trump-Biden debate 'an embarrassment' Netflix distances from author's comments about Muslim Uyghurs but defends project MORE of North Dakota and Don YoungDonald (Don) Edwin YoungDemocrats, GOP fighting over largest House battlefield in a decade Coordinated federal leadership is needed for recovery of US travel and tourism Alaska may select our next president 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 SchumerChuck SchumerFive takeaways on Iran, Russia election interference Pelosi calls Iran 'bad actor' but not equivalent to Russia on election interference Schumer says briefing on Iranian election interference didn't convince him effort was meant to hurt Trump MORE (N.Y.), House Democratic Leader Nancy PelosiNancy PelosiTrump predicts GOP will win the House Hillicon Valley: Five takeaways on new election interference from Iran, Russia | Schumer says briefing on Iranian election interference didn't convince him effort was meant to hurt Trump | Republicans on Senate panel subpoena Facebook, Twitter CEOs | On The Money: Pelosi cites progress, but says COVID-19 relief deal might be post-election | Eviction crisis sparked by pandemic disproportionately hits minorities | Weekly jobless claims fall to 787K 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.