We need rescue & reform for multiemployer pension plans, but not a no-strings-attached bailout. Published by Jane the Actuary View all posts by Jane the Actuary
17 thoughts on “Forbes post, “Hidden in the HEROES Act, A New Multiemployer Pension Plan Bailout””
agree that this should not be in the bill…along with several other items, including the elimination of the SALT agreement from a few years ago which should be kept (amazing how these things get in these huge (1800pages?) bills…keep it simple, please…
Check out the other major piece of multiemployer pension legislation in the bill, Division N, the GROW ACT, starting at page 1241. This would allow 50% or better of employer contributions being made to an existing multiemployer plan to be shifted to fund a new “composite” plan that would pay no premiums to PBGC.
It’s obvious that you and the people that don’t support this bill have never been a union member and by the way you talk don’t like unions. I would like to know how you would feel if someone told you that your Pension is not going to be there for you when you retire after 30 years of working. This Bill is not something that they just proposed, it’s been Introduced for several years now and not recognized. It’s ok to bail out Banks, Car companies, airlines and hosts of others and That’s ok!
I agree with Gregory. When wall street tanks and the money invested by pension plans disappears, working people are told to take a hit. But the heads of the investment firms don’t lose their jobs for bad advice or direction. Quite often they get a bonus at the end of the year.
Bank boards, oil companies, and now many other large corporations are asking for help from the Government, and that’s ok. But when working people ask for help, heaven to Betsy we can’t have this kind of thing go on. That’s RIDICULOUS, corporate welfare should end.
Jane the actuary – good article, but it is a big no on bailing out that teamsters plan, which this multi employer bailout is linked to. Forget it! Those unions ran the companies into the ground, picked their bones and now want to drink our blood. Forget it!
Did the unions run UPS into the ground? They average three billion a quarter. That’s net after everything is paid for..
I correct myself, not that much. UPS netted 4.4 billion (only) in 2019. that’s 1.1 billion each quarter.
This bill has to be included. Many of these funds were in no danger of going underfunded until the government stuck their hands in and bankrupted them because in this country it is illegal for a plan to be 100 percent funded. They took control of healthy plans from people who paid in their own money and drastically changed the payout structure to drain them. They caused the problem and took union workers money from their pockets. Now their best solution is to cut more and offer loans to pay back our own money. It disgusts me that its even being debated. Give the peoplecehat they have already worked for and stop screwing over working class people.
In 2003 The PBGC STOLE $1.2 BILLION of USAirways Pilots Pension. Currently they dole out from 0 to40% of our already earned pension. The stock market was at 7000 at the time. It is currently 24,000. We have not received a dime extra. The PBGC STOLE OUR ASSETS AND MADE A HUGE PROFIT.
You comment about saving single employer plans like it’s no big deal but act like saving multi employer plans is a terrible idea.
The teamsters central states pension fund was under the oversight of the federal government for years. Everything thing that was done was approved by the federal government.
Also government regulations prohibited our pension fund from making any adjustments to pension payments to compensate for the fact that they were loosing income from employer contributions and investments.
Remember people there are people like myself that all we did is work 37years in a very physical trade with agreement of money i put in for my pension would be there for me when I did my time and physically cant go on. I not only worked my 30 plus years as I got within month’s of retirement my Union said that couldn’t afford to let me retire and I worked extra 7 years and Physically could not go on at my age. My Union told me still cant afford me to retire unless i took a 28% hit on my Pension. I had no choice. NOW they say Pension Plan in trouble. Government has made seval mistakes in the last 30 years involving Union Multi Employer Pension Plans. ITS Time to step up and give us people that just want what we EARNED.
How would you like it if who ever pays for your article’s said from now on you only get half of what we pay you now. You wouldn’t like that I’m sure. The government oversaw our teamsters pension And put so many regulations on it, it tanked. As a 33 year teamster if I lose my pension , I lose my house and way of living. I know you wouldn’t want that for you ether. Yes we need the bailout. No cuts
Why is giving money to the unemployed, Airlines, business, and natural disaster areas, not a bailout because it was of no fault of their own, but helping the old and broken people who have been essential workers for 30 plus years and no fault of their own is a bailout that they don’t deserve? Work until your 100 does that sound fair for you since you wish it for us.
I keep hearing “its my pension and I paid for it”…. Not true… You paid in a small percentage into it and the taxpayers are responsible for the rest. We who work in the private sector have 401k’s which are based on the stock market results – good or bad. We also have to reply on social security with no COLA’s and having to work to a minimum of 67 years of age. I don’t know about everyone but I started working at 18 years old so by the time I reach the minimum age to receive social security and my 401k, I will have worked what 50 years??? Get rid of pensions NOW period. It is NOT sustainable and they do not represent the majority of workers in the workforce today. Work 30 years WOW and you expect the rest of us in the private sector who do NOT have a guaranteed retirement unless we save, to pay for it. Not gonna happen people……