KOPPA Spiel

This week saw the re-rollout of the Keep Our Pension Promises Act (KOPPA) which will likely go nowhere but it does give us an insight into how a law might get passed these days.

First, start off with a false premise:


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The federal government made no promises to protect the full pensions of employees in multiemployer plans and nobody is suggesting cutting benefits below the PBGC guarantee. If anything it is the federal government that created the mechanism to cut benefits while allowing the union/management/actuary cabal to manipulate funding levels that necessitated this ploy:
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Al Franken explains one of those ‘loopholes’:
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The actual cap, which would presumably apply to all individual retirement benefits, is $5 million per the Pension Rights Center summary:

How is KOPPA paid for? The Legacy Fund created by KOPPA would be funded by partially repealing two tax breaks that ONLY benefit wealthy individuals. One of the measures would change the tax laws to ensure that rich real estate and art speculators would have to pay taxes when they trade one property for another. The second measure would limit to $5 million the amount that individuals can save in 401(k) plans or in IRAs. Both of these proposals would raise enough money to pay for the Legacy Fund on a year-to-year basis.

Full event:
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