Bailout Committee Hearing Employers

The Joint Select Committee on the Solvency of Multiemployer Pension Plans (Bailout Committee) met today “to hear firsthand from several employers about the challenges they face, as well as insight into how the multiemployer pension system can be improved.” Here is the full hearing (starting at the 42 minute mark):
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All bad news that most of you have heard before with these excerpts dealing with options:


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15 responses to this post.

  1. Posted by Stanley on June 14, 2018 at 3:00 pm

    Well, what about Tim’s magic beans?

    Reply

  2. Posted by geo8rge on June 14, 2018 at 3:45 pm

    Off topic: Radical plan to split California into three states earns spot on November ballot
    http://www.latimes.com/politics/la-pol-ca-california-split-three-states-20180612-story.html

    OK, it is unlikely to happen but.

    How do they split up the State of California legacy unfunded pension liabilities and debt and other obligations? Do the 3 new states have to respect the legacy California rule, or any laws with regard to ‘legacy’ pensions? What happens to Calpers? Will they have 3 different constitutions?

    Another curiosity is how water will be distributed. LA really does suck Northern California dry. But that is probably not a pension issue.

    Could NJ solve its pension problems by splitting into … ?

    Reply

    • Posted by NJ2AZ on June 14, 2018 at 6:19 pm

      the water question is curious.

      also why every time someone from California says if their state left the US they’d have all the leverage, all i can think of is the Colorado River compact.

      California would be taken to the woodshed. he who controls the water…controls the universe!

      Reply

  3. Posted by Stanley on June 15, 2018 at 9:37 am

    They haven’t built a new reservoir in decades. And they are flushing millions of tons of water every year to save a handful of so-called wild bait fish that could easily be produced in hatcheries. On its current tack with lefty/enviro dominated government, CA will be OK for the coastal elite and a hellhole for everyone else (who is dumb enough to stay there.)

    Reply

  4. Posted by Stephen Douglas on June 15, 2018 at 1:20 pm

    Aliya Wong: Executive Director of Retirement Policy at the U.S. Chamber of Commerce.

    “Without substantive and timely multiemployer plan reform, businesses will go broke, workers will be left without benefits, and taxpayers may face a hefty bill. It is critical that Congress gets this right and take steps that will not only restore the system of today, but also allow it to remain solvent in the years ahead. The Chamber and NCCMP stand ready to help. The time to act is now.”

    Reply

  5. Posted by Stephen Douglas on June 15, 2018 at 1:22 pm

    Aliya Wong, continued…

    “First, all members of the Committee must recognize that rescue legislation is urgently needed. We can no longer kick the can down the road.

    Second, these struggling plans will need financial assistance. Our recommendation is long-term, low-interest loans that will protect taxpayers from financial liability. 

    Third, all parties will have to be part of the solution, including plan beneficiaries and participating employers.

    Fourth, while the PBGC may ultimately need more money, in the form of increased premiums paid by employers, these increases must be evaluated after tools to restore the solvency of these plans are put in place.

    Finally, composite plans must be authorized so that healthy multiemployer plans can stay that way. Composite plans are a hybrid between traditional pension plans and individual accounts plans that can bridge the gap between current existing options.”

    Reply

    • Posted by Tough Love on June 15, 2018 at 3:24 pm

      All horseshit.

      Aliya Wong, being the Executive Director of Retirement Policy at the U.S. Chamber of Commerce is clearly representing BUSINESS interests ………. and is simply looking to get the BUSINESSES that should have fully funded those pension promises (or promised LESS) off the hook and push what is THEIR obligation onto the Taxpayers.

      There is ZERO justification for a Taxpayer-funded bailout of the Multiemployer Plans.

      Reply

  6. It looks like there already is a consensus. There will be an MEP bailout. Just a question of how much, and when. It’s not just for the retirees. Without reform “… businesses will go broke, workers will be left without benefits, and taxpayers may face a hefty bill.” (Wong)

    Next step… public pensions…
    “Pensions play an important role in the economy
    – Spending by retirees stimulates local economies,
    and pension assets are an important source of
    capital for businesses. America’s mortgage market,
    its private equity and high-tech industries, and many
    of its start-ups rely on pension funds as a source of
    capital.”

    the National Conference of Public Employee Retirement Systems (NCPERS) posits that if “public pensions were dismantled, our economy would suffer a loss of about $3 trillion by 2025.”

    https://burypensions.wordpress.com/2018/05/16/public-pensions-as-revenue-generators/

    Reply

  7. Posted by geo8rge on June 16, 2018 at 10:00 am

    Some links to the UPS – Central States Teamsters Pension problems:

    Teamster Pension Divide – UPS Teamsters earn dramatically different pensions depending on the plan they’re in—with the company-controlled UPS Pension Plan in the former Central States areas paying the lowest benefits by far.

    http://makeupsdeliver.org/compareupspensions/

    State Comparison of UPS benefits
    http://makeupsdeliver.org/wp-content/uploads/UPS-Pension-Comparison.pdf

    Reply

  8. Posted by T B on June 17, 2018 at 5:10 pm

    This plan is designed for public pensions but could easily accommodate multi-employer pensions as well, here’s how:

    https://drive.google.com/fi

    Thoughts?

    Reply

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