Important information from Congressman Joyce…….
There are more than one hundred multiemployer defined benefit pension plans facing a funding shortfall.
If they fail, hundreds of thousands of people will lose their pension that they spent their entire lives working for.
In Ohio that is close to 60,000 people. Ohio retirees in troubled pensions include the Central States Pension Fund (48,000 Ohio pensioners), the United Mine Workers of America 1974 Pension Plan (6,000 Ohio pensioners), and the Iron Workers Local 17 Pension Plan (2,000 Ohio pensioners).
About 110 multiemployer pension plans are considered to be in critical and declining status, and that number is increasing; the Central States Pension Fund and the Pension Benefit Guaranty Corporation (PBGC) are both projected to become insolvent by 2025; and more than 60,000 Ohioans face drastic pension cuts to pennies on the dollar if the PBGC becomes insolvent. Many small employers in the multiemployer system already face increasing challenges from creditors, and ultimately could be forced to file for bankruptcy due to their withdrawal liability. If no action is taken, the resulting bankruptcies of contributing employers in Central States could cause many smaller multiemployer pension plans to become insolvent as well. This, in turn, would threaten the even greater population of employers in these plans and thereby negatively impact economic growth.
This is why I joined some of my colleagues in urging action to find a fiscally responsible solution to keep the promises made to our retirees. Click here to read the letter.
Congress has started to act on this matter. Included in the latest spending package that the President signed was the creation of a Joint Select Committee on Solvency of Multiemployer Pension Plans. This Committee consists of 16 Members of Congress: four Republicans and four Democrats in both the House and the Senate. The deadline for the Committee to vote on a statement of findings and recommendations, and proposed legislation to carry out these recommendations, is November 30th.
Every American deserves access to secure retirement plans, especially if you have already been paying into one your whole working career. I will continue to work with my colleagues to make sure this promise is secured for yours and future generations.