Bailout Committee To Hear Employers

The Joint Select Committee on the Solvency of Multiemployer Pension Plans (Bailout Committee) today announced they will convene a hearing next Wednesday (June 13) “to hear firsthand from several employers about the challenges they face, as well as insight into how the multiemployer pension system can be improved.”

The witnesses:

11 responses to this post.

  1. Posted by Tough Love on June 8, 2018 at 7:15 am

    I really doubt that the MEP employees’ concern is providing …………..”insight into how the multiemployer pension system can be improved”……….but only getting a bailout, paid-for by Taxpayers who had ZERO roll in any aspect of their Plans.

    The MEP Plams are a part of their “retirement security” EXACTLY like 401K Plans are part of the retirement security of most Private Sector Plans. MEP Plans should be “bailed out” ONLY when the US Gov’t also agrees too make whole those who lost money in 401K Plans in the Dot-com bubble and in the Great Depression.

    Reply

  2. It’s not like all MEPs are on deaths door. Many are in fair condition and could benefit from ”insight into how the multiemployer pension system can be improved”

    ” Brown said. “I have spent time with Ohio businesses who have done everything right, but are being punished because their business thrived while so many of their competitors failed. We cannot allow American businesses to collapse and workers to lose their jobs.”

    Don’t let the perfect be the enemy of the good. Nobody disagrees that there need to be reforms in MEPs, even those that are not __now__ in trouble. In the process, some may come out better than others. That’s not necessarily “EQUAL”, but not necessarily bad, either.

    Reply

    • Posted by Tough Love on June 8, 2018 at 8:57 am

      If TRUE “improvement” in MEP Plan structure is the goal, the contribution requirements cannot be disassociated with the level of promised benefits and the impact of actual vs expected investment & mortality experience.

      But make that change now and you’ll immediately bankrupt many of the MEP Plans ……. as you would MOST Public Sector Plans if reasonable & appropriate assumptions and methodology (instead of the wildly optimistic one now in place) were required.

      NEITHER the MEP or Public Sector Plans should be bailed out with Taxpayer funds.

      Reply

  3. Posted by geo8rge on June 8, 2018 at 8:56 am

    July 13, 2017 Can UPS Proposal Fix Pension Crisis? Some Think It Can
    https://www.bna.com/ups-proposal-fix-n73014461711/

    United Parcel Service is working on a proposal that it says can fix a looming insolvency crisis affecting pensions for unionized workers.

    The proposal would provide low interest long term federal government loans to troubled pension plans to cover their cash flow shortage for 5 years. Plan participants would see benefit cuts of 20 percent across the board. Plans would be obligated to begin interest-only repayments after 5 years. Loan repayments would be ensured through the creation of a risk reserve pool funded by employers, participants and unions.

    Reply

    • Posted by Tough Love on June 8, 2018 at 9:01 am

      My guess is that in many cases the loans will be defaulted upon…….. back the loans with STRONG collateral …….. with the Union & participating company assets and it might be a reasonable approach.

      Reply

    • Posted by geo8rge on June 8, 2018 at 9:50 am

      Fedex stock seems to be doing way better than UPS, not that stock market value is the measure of all things.

      Reply

  4. Posted by geo8rge on June 8, 2018 at 12:00 pm

    If there is a bailout, how should the NJ congressional delegation vote?

    Reply

    • Posted by NJ2AZ on June 8, 2018 at 12:18 pm

      figure they vote yes because:

      1.democrats will do anything viewed as being pro-union
      2. they will hope it might set the precedent for a bailout of their doomed public plans

      Reply

      • Posted by PS Drone on June 8, 2018 at 1:09 pm

        The federal government is broke. Medicare/Medicaid (thanks LBJ!) is bankrupting the country. Given that, and despite the fact that Trump is an idiot when it comes to long-term financial peril, I doubt very much the feds will ride to the rescue of anything. Who/what will be rescuing them when they will soon only be taking in half of what they spend and have to borrow the rest? We have 40 million combined “employed” in government and healh care. Most of them are pure overhead and most of their pay is borrowed. Can’t last. Just like the NJ public sector pension plans.

        Reply

      • Posted by Tough Love on June 8, 2018 at 1:24 pm

        You’re likely correct …………… unfortunately.

        Reply

    • Posted by geo8rge on June 9, 2018 at 11:02 am

      It would be interesting to rank states by multi employer plan exposure. NJ seems to some teamster locals, especially near NYC and Philly. The pensions above and below the pbgc max would also be interesting to look at, as I assume the Fed Gov will meet minimum PBGC guarantees under all circumstances.

      Reply

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