Letter from Joe Donnley

Discussion in 'Central States Pension Fund Discussion' started by hemorrhoid, Dec 15, 2015.

  1. hemorrhoid

    hemorrhoid Active Member

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    December 15, 2015

    Dear Friend,

    Thank you for taking the time to contact me about S. 2147, the Pension Accountability Act. Like you, I support efforts that help ensure retirement security for middle-class families.

    As you may know, the Pension Benefit Guaranty Corporation (PBGC) was created by Congress to insure private sector defined benefit plans. The PBGC, through insurance premiums paid by employers, finances pension plans that lack sufficient money to pay all benefits. Recently, however, the PBGC has estimated that its multiemployer program will run out of money by 2023. In addition, according to the PBGC, approximately 150 to 200 private sector plans covering about 1.5 million workers and retirees are projected to run out of money within the next 20 years.

    In response, Congress in 2014 passed the Multiemployer Pension Reform Act of 2014 (P.L. 113-235), which allows multiemployer plans that are expected to become insolvent to modify benefits if a plan is deemed "critical and declining." The Treasury Department may prohibit a plan from reducing benefits if it finds the plan's findings clearly erroneous. In addition, participants in most plans may vote to reject such a reduction.

    In October 2015, the Pension Accountability Act was introduced to allow pension participants to reject the suspension of their pension benefits. In addition, the bill would eliminate the Treasury Department's authority to override a vote to reject a reduction, even if the plan is systemically important.

    As your Senator, I will continue working with my colleagues on both sides of the aisle to ensure that efforts are made to protect the retirement of all Hoosiers. Currently, the Pension Accountability Act is pending before the Senate Committee on Finance. Should this legislation come to the floor of the Senate for a vote, I will be sure to keep your thoughts in mind.

    It is a privilege to represent you and all Hoosiers in the Senate. Your continued correspondence is welcome and helps me to better represent our state. I encourage you to write, call, or email if my office can ever be of assistance. You can also check out my Facebook page and follow me on Twitter by visiting my website.

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    ESP likes this.

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