Is today’s Senate proposal the solution to Multiemployer Pension woes? Published by Jane the Actuary View all posts by Jane the Actuary
13 thoughts on “Forbes post, “At Long Last: Senate Moves Forward With a Multiemployer Pension Rescue””
I Surely Hope That They Implement Something Fast! They Have Already Taken Away Thirty Percent Of My Pension And Cannot Afford Another Cut! I can only hope and pray that this will work! I am 65 and hopefully have a few more years of living comfortably!
These are private’s pensions, that have been knowingly and by design underfunded for years. The participants have by choice paid for less coverage from the PBGC than the single employer pensions did. The idea that the government should bail out the PBGC has been offensive enough; the idea that as part of this we would increase the size of the guarantee from the PBGC now that the multi employer part is going under is light years worse. This should lead to violent responses from the majority of Americans who have no pension, and are now expected to bail out the minority that do, but I expect that no one is paying attention.
The Grassley Alexander proposal is a BAILOUT whereas the Butch Lewis act is not! The Congressional Budget Office spent months analyzing the Butch Lewis Act and determined it would pay for itself in the long run. Be careful of what you support and what you do not!
Look, this is the same old story repeated countless times. These pension benefits were too generous by a wide margin to begin with. Then, when it was crystal clear that they were unsustainable, none of the plan administrators made any changes to benefits. Now when the plans are failing, unconnected third parties (taxpayers) are on the hook to fund said plans. Since when should driving a truck entitle you to $60k a year in retirement pay? It’s an abomination cooked up by the thiefs themselves through their collective power commonly known as “unions”. I hope this house of cards crashes hard, and soon.
You should address your comments to The Department of Labor that had oversight responsibilities to ensure the plan administrators were making sound investments. You should also look up a little known LAW The Employee Retirement Income Security Act of 1974 (ERISA) passed in 1974. To collect $60,000 per year means you have to drive that truck 60 years, AND be covered under the Tier1 plan! That means less then 1% of the retirees are drawing $60,000 per year, IF THAT! The drivers that are getting 60 grand a year would be my heros!
Just as “The Butch Lewis Act” faces obstacles in the Republican controlled Senate, this plan will face obstacles in the Democratic controlled House. As a participant in C.S.P.F., I have never expected something for nothing. If a cut of 10 percent would secure the fund, not only for current retirees, but future retirees as well, then count me in. On the other hand, a plan that would not protect the pensions of those that are still working, I would be opposed to. Protection for ALL is worth ten percent.
The Butch Lewis Act faces obstacles in the Republican controlled Senate because Mitch McConnell will not put the bill on the floor which means it will not be voted on!
FYI It passed the house by ALL but 2 Democrats and the rest were Republicans!
Also the Grassley/Alexander proposal requires a 20% reduction in your pension and you will be required to pay an additional 2% tax on your monthly check, and there is no guaranteed protection for the present workers paying into the CSPF pension plans!
Central States pension fund was fleeced by wall street. The funds trustees hired a wall street firm to guide their market investments and subsequently lost an avalanche of money. Congress promised an investigation. The incestuous relationship with Congress and Goldman Sachs and others meant that the fix would not occur. There is a virtual revolving door between Goldman and the Federal Reserve Chairmanship. The pensions have the same problem as Social Security funds. Not enough contributors and too many collectors. The fix was supposed to be a low cost loan, not all this stuff.
You are correct, BUT where is that promised investigation? Whatever happened to a law called ERISA passed in 1974? The Department of Labor had oversight of investments made by the plan administrators. Where were they when the administrators were SPECULATING with our $$$$, and WHY are they not being held to account? The Multiemployer Pension Reform Act of 2014 that was hidden away in the federal budget bill of 2014 was passed by congress and signed into law by President Obama! Out of 535 voting members of congress, I’ll bet only half a dozen congressmen even KNEW that act was in the budget bill! That act essentially made ERISA null and void. I like to think of it as a “sucker punch!”
The big problem here is the longer it takes, the more $$$ it will cost! In 2015 a FEDERAL LOAN was proposed that would have been 11 billion. Now, 5 years later the same LOAN would cost 18 billion! Who knew?!!
Maybe JANETHEACTUARY could give us her opinion on The Butch Lewis Act which seems to be missing from this article other than “something for nothing?” I don’t understand that part!