Republican Senators Introduce New Pension Bill

Senators Chuck Grassley (R-Iowa) and Lamar Alexander (R-Tenn) have introduced a pension bill, the “Multi-employer Pension Recapitalization and Reform Plan,” to deal with the crisis affecting millions of retirees, surviving spouse, and active workers in some 125 pension plans.

pensioncuts_thumb.jpgThe Grassley bill would partition plans that are in critical status, and move the so-called “orphan” retirees to the Pension Benefit Guaranty Corporation (PBGC) for their benefits. The PBGC would be strengthened with increased premiums from pension plans, and also payments from employers, actives, retirees and unions. Some federal money would also aid the process initially. 

The PBGC maximum multi-employer benefit currently for a 30-year retiree is $1073 per month; it would apparently be about $1670 per month under this bill.

The bill has a number of other components, including stricter regulation of pension plans and changes in withdrawal liability. 

The IBT announced the plan is being “actively reviewed” by the union. The Teamsters have endorsed S. 2254, the Butch Lewis Act. The IBT statement reports “we are glad to see senators on both sides of the aisle” are taking action.

The bill is extremely complicated. The “Technical Paper” with the terms of the bill is 77 pages long. More information and analysis will be available soon.

Showing 4 reactions

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  • Roger Chevalier
    commented 2019-11-26 19:40:49 -0500
    The Government & our leaders are corrupt allowing the Government to dip into our hard earned money to bail out the banks & everything else. This bill will be another Minnesota John Kline created farmer hail storm to steal our hard earned pension money:( No storm did this. THEY STOLE OUR MONEY & THEY NEED TO SIMPLY PUT IT BACK WITH INTEREST. We took less wages & planted that money over the years in the Central States Pension fund as seeds for our retirement years. WE ARE SO MAD!!
  • Vance Kittilstved
    commented 2019-11-25 14:49:19 -0500
    My taxes fund state and federal pensions their benefits are raised every contract we are just asking to keep what we paid for and negotiated for in our contracts
  • Tim McLaughlin
    commented 2019-11-22 14:15:39 -0500
    Republicans doing something for the working man? We’ll probably be paying money back.
  • Lawrence E. Cornell
    commented 2019-11-22 10:49:22 -0500
    Under this bill I will lose two thousand dollars a month . You are funding your bill on the backs of the retirees
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