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 BrownTop Democrat: 'A lot of spin' coming from White House on infrastructure Schumer's moment to transform transit and deepen democracy Democrats ramp up pressure for infrastructure deal amid time crunch 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 NealOn The Money: Justice Department says Trump's tax returns should be released | Democrats fall short of votes for extending eviction ban Justice Department says Trump's tax returns should be released Democrats release data showing increase in 'mega-IRA' accounts MORE (D-Mass.).

Republicans such as Reps. Peter King and Dan Donovan of New York, Chris SmithChristopher (Chris) Henry SmithLawmakers form bipartisan Uyghur Caucus to highlight abuses Bipartisan congressional commission urges IOC to postpone, relocate Beijing Games The Hill's Morning Report - Presented by Facebook - Senate path uncertain after House approves Jan. 6 panel MORE, Frank LoBiondoFrank Alo LoBiondoVan Drew-Kennedy race in NJ goes down to the wire Van Drew wins GOP primary in New Jersey Amy Kennedy wins NJ primary to face GOP's Van Drew 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. FitzpatrickGyms, hotels, bus companies make last-ditch plea for aid Democrats seek to calm nervous left Biden's corporate tax hike is bad for growth — try a carbon tax instead MORE and Ryan CostelloRyan Anthony CostellloRep. Brendan Boyle decides against Pennsylvania Senate bid Pennsylvania's Democratic lt. governor files to run for Senate Bottom Line MORE of Pennsylvania, and Kevin CramerKevin John CramerBiden's bipartisan deal faces Senate gauntlet Trump takes two punches from GOP The Hill's 12:30 Report - Presented by Facebook - US gymnast wins all-around gold as Simone Biles cheers from the stands MORE of North Dakota and Don YoungDonald (Don) Edwin YoungOVERNIGHT ENERGY: Biden suspends Arctic oil leases issued under Trump |  Experts warn US needs to better prepare for hurricane season | Progressives set sights on Civilian Climate Corps Overnight Energy: Biden admin backs Trump approval of major Alaska drilling project | Senate Republicans pitch 8 billion for infrastructure | EPA to revise Trump rule limiting state authority to block pipelines Biden signs bill to help Alaska cruise industry 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 SchumerSenate infrastructure talks spill over into rare Sunday session Senate holds sleepy Saturday session as negotiators finalize infrastructure deal An August ultimatum: No recess until redistricting reform is done MORE (N.Y.), House Democratic Leader Nancy PelosiNancy PelosiOn The Money: Justice Department says Trump's tax returns should be released | Democrats fall short of votes for extending eviction ban House adjourns for recess without passing bill to extend federal eviction ban Photos of the Week: Olympic sabre semi-finals, COVID-19 vigil and a loris 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.