Congress is working on a lengthy bill for further COVID relief. One small portion of it is modeled on the union-backed Butch Lewis Act, which passed the U.S. House in 2019 but not the U.S. Senate. Butch Lewis would provide
loanscash grants to union-sponsored multiemployer pension plans that are otherwise headed toward insolvency.
About one in 10 multi-employer pension plans are in that situation thanks to stock market losses and declining numbers of active employees in the plans, and the wellbeing of up to 1.3 million union members and spouses is at stake. Butch Lewis would shore up declining pensions and restore benefits that were cut by some pensions in an effort to forestall insolvency.
If Congress does nothing, the Central States Teamster Pension is expected to run out of money in 2025. That would lead the Pension Benefit Guaranty Corporation (PBGC) itself to become insolvent. PBGC is a government insurance agency that guarantees pension benefits.
Publication Date: 17 February 2021
Publication Site: nwLaborPress