Trump To Sign Union Pension Plan Fix By Dec. Predicts Ways & Means Chair, But Lead GOPer Not So Sure

House Ways & Means Chair Richard Neal predicted President Trump will sign a bill to rehabilitate troubled union pension plans. But the lead Republican on the committee, Kevin Brady said a bipartisan solution has yet to be created. Photo credit: ASSOCIATED PRESS

President Donald Trump will sign a bill by the end of the year to fix the troubled pension plans of over one million of union workers who typically work at several employers during a year such as truckers and bakers, House Ways & Means Committee Chair Massachusetts Democrat Richard Neal predicted this morning.

But the lead Republican on the committee, Texan Kevin Brady isn’t so sure.

Ways & Means passed a Neal-crafted bill this afternoon on a party-line vote to help secure the retirement benefits for millions of union workers covered by multiemployer plans.

He said he expects the legislation will pass the full House by the end of July.

However, Brady called the bill “dead on arrival” in the Senate.

“It has a lot of flaws,” said Brady who chaired Ways & Means when the Republicans held the House the last time.

He added the bill is probably too extreme to be a starting point for a bipartisan solution.

A special Senate committee charged with finding a solution to the multiemployer pension problem last year failed to agree on a cure.

Neal’s legislation would establish the Pension Rehabilitation Administration under the Treasury Department which would be able to make loans to troubled plans.

If the pension plans were unable to pay back the debt, the agency could forgive a portion of the principal.

The Ways & Means Chair said he has spoken to Treasury Secretary Steven Mnuchin twice about the issue.

“He acknowledged the depth of the problem. I am not going to say he endorsed my bill,” said Neal.

The Congressman added two weeks ago he met with Pension Benefit Guarantee Corporation chief Gordon Hartogensis.

“He applauded our efforts,” said the legislator.

Neal called his bill the only game in town.

Neal’s legislation became a target board for Republicans during an hours-long Ways & Means session,

South Carolina’s Tom Rice attacked it as a bill of goods that won’t protect future workers.

Ohio Republican Brad Wenstrup faulted the bill for not ensuring long term stability for the Teamsters’ Central States Pension plans and other union pension vehicles.

Texan Jodey Arlington called the loans toxic, like the exotic loans that led to the financial crisis.

Wisconsin Democrat Ron Kind warned without a fix, Central States will be insolvent in five years.

Countering the claims of Republican the bill will not be passed in the upper chamber, Kind said it will force the Senate’s hand.

The legislation has the support of the AFL-CIO.

“This fix is urgently needed. Hundreds of thousands of working people spent a lifetime earning a secure retirement, only to see that future hang by a thread. Pensions are a promise—it’s time for Congress to take action and keep that promise.” AFL-CIO Secretary-Treasurer Liz Shuler, the second-ranking national officer.

Almost 10 million workers are in multiemployer plans with roughly1.3 million in plans  in danger of running out of mo

Source link

Share with your friends!

Products You May Like

Leave a Reply

Your email address will not be published. Required fields are marked *

Get The Best Financial Tips
Straight to your inbox

Subscribe to our mailing list and get interesting stuff and updates to your email inbox.