Breaking News: PBGC Gets a Hearing

The Joint Select Committee on the Solvency of Multiemployer Pension Plans (Bailout Committee) today announced they will convene a hearing in one week to examine the state of the Pension Benefit Guarantee Corporation (PBGC) with PBGC Executive Director Thomas Reeder the only scheduled witness.

“With more than 100 multiemployer pension plans on the brink of failure, 1.3 million workers and retirees across the country are counting on this committee to solve this crisis,” said Sherrod Brown (D-Ohio). “As this committee works toward a bipartisan solution, this hearing will help us better understand how to fix the system, so we can protect the benefits workers have earned after a lifetime of hard work and the small businesses that could end up on the hook for pension liabilities they can’t afford to pay. We have a responsibility to get this done before it is too late.”

What they could be hearing:

  1. Unions cannot support their defined benefit plans now and it can only get worse
  2. PBGC guarantees are ‘in dire straits and getting worse’
  3. 114 Multiemployer Plans, including Central States, will be looking for a bailout very soon.

That is coming. What the bailout committee is doing here is negotiating terms.

 

 

9 responses to this post.

  1. Posted by dentssdunnigan on May 10, 2018 at 1:05 pm

    Now here is a good read of how the unions are bankrupt companies and states …https://www.zerohedge.com/news/2018-05-10/meet-americas-next-pension-casualty

    Reply

  2. Posted by Tough Love on May 10, 2018 at 1:16 pm

    What a load of crap ……….. Taxpayer-money being used to bail out pensions that THEY had absolutely NOTHING to do with, and with many of these Plans allowing 30-and-out-provisions with no minimum age …… with unreduced pensions often commencing (without any actuarial reduction) 10, even 15 years YOUNGER than what is commonplace in Single employer Corporate-sponsored Plans.

    What justifies a bailout for THEM and no bailout for money lost in 401K Plans ….. SAME purpose, “retirement security” ?

    Reply

    • Posted by Stanley on May 10, 2018 at 4:24 pm

      Yeah, and what about the millions who have no defined pension benefit?

      Reply

    • Posted by Marcia on May 11, 2018 at 11:09 am

      Usually agree but slight disagreement here. The difference between PBGC and 401k is that….up to the advertised limit…it is supposed to be insured. Above that limit, agree.

      Reply

  3. Posted by Stanley on May 10, 2018 at 4:23 pm

    “We have a responsibility to get this done before it is too late.”

    Sorry bud! It’s already way past too late. What a clown! He should be on a stage.

    Reply

    • Posted by Tough Love on May 10, 2018 at 5:23 pm

      Unfortunately for America’s Taxpayers, I suspect a lot of vote-horsetrading is going on behind the scenes to garner the support of Congressman whose States DON’T have a lot of people in these failing Multi-employer Plans.

      The old you-scratch-my-back today, and I’ll scratch yours tomorrow …………. with the Taxpayer footing the bill.

      Reply

      • Posted by Stanley on May 11, 2018 at 10:29 am

        I’m hoping that you are incorrect on that. Looking at the Joint Committee, I would say that they can get an affirmative vote from a majority of Republican members only for a very modest proposal–one that democrats wouldn’t buy in on–too cheap. Even if they prop up PBGC for MEP plans, that isn’t much of a defeat for us since PBGC takeovers deliver pretty fair whacks to pensions. The Butch Lewis Act delivers retroactive payments to plans that have previously adjusted payouts! A sizeable number of our fellow citizens seem to have chucked their sense of right and wrong. Pleading for a handout isn’t beneath them.

        Reply

        • Posted by Tough Love on May 11, 2018 at 10:52 am

          I don’t have a problem honoring the PBGC Guarantees …. up to the individual limit-of-payout ….. as NOW structured.

          It’s an enhancement of the CURRENTLY guaranteed benefits ….. at taxpayer expense …… for which I find zero justification.

          Reply

          • Posted by MattJ on May 11, 2018 at 4:53 pm

            I have a huge problem with federal money going towards funding the PBGC guarantees. PBGC was written as a self-funding mechanism, with no federal funding. The feds are going to be called on to help with the underfunding of retirement for all workers, not just those working for companies (or governments) with underfunded pensions. Don’t let one group jump ahead and get a better deal then the rest.

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