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.

Get Advice Join TDU Donate

Recent News

During the Crisis of the Century, Hoffa Sides with Management

Since the beginning of the COVID-19 pandemic, Teamsters across the country have been thrust into an unexpected crisis of unforeseeable proportions. At UPS, no sooner did many of us find out that we were a part of the “essential workforce” than we were fighting on the shop floor to protect ourselves from the virus.  

All YRCW Teamsters in TeamCare Get Coverage Extended

A May 9 Memo from the IBT Freight Division reports that arrangements have been made so that both active YRCW employees and employees laid off after March 1 will have the full 8 weeks of “Layoff Coverage" going forward from May 10 to continue health care coverage, if they are in TeamCare (Central States H&W). This includes both employees who have been actively working and those who may have already used up some of the “layoff coverage.”...
View More News Posts