Bailout Committee Trial Balloon

With a report required, by law, to be released next week the Joint Select Committee on Solvency of Multiemployer Pension Plans (Bailout Committee) sent over a draft to the Washington Post which came out with an article, excerpted below:

A draft of the plan, obtained by The Washington Post, would direct the Treasury Department to spend up to $3 billion annually to subsidize payments for retirees from certain underfunded pensions.

The federal bailout is one of multiple proposals being considered by a special congressional committee tasked with addressing the pension crisis. The committee has a Nov. 30 deadline to submit a proposed solution, and aides cautioned that negotiations were extremely fluid and that there is a risk talks will unravel.

The aide said the plan reviewed by the Post was one option under consideration and did not represent a final deal.

Negotiators are considering a number of other potential changes to try and shore up multiemployer pension plans, including new fees paid by union members and companies as well as higher premiums levied on pensions, according to the draft reviewed by the Post.

White House officials have been briefed on the status of talks but they have not expressed whether they would support the deal if it is finalized. A Treasury Department spokesman didn’t have an immediate comment on the plan.

“We bailed out Wall Street in 2008 and 2009,” said Kenneth Feinberg, who was appointed to a top role at the Treasury Department in 2015 working on problems with multiemployer pension plans. “Bailouts have occurred before.”

4 responses to this post.

  1. Not happening= Slippery Slope

    Reply

  2. Posted by skip3house on November 21, 2018 at 7:59 am

    Will deliberate bad arithmetic and ignorance pay off?

    Reply

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