PRC Statement on Retiree Pension-Cut Legislation Included in Omnibus Bill

PRC Statement on Retiree Pension-Cut Legislation Included in Omnibus Bill

Washington – On December 16, President Obama signed the 2015 Omnibus spending bill. The new law contains provisions that allow certain underfunded multiemployer pension plans to cut retirees’ benefits. The Pension Rights Center released the following statement from Executive Vice President Karen Friedman:

 

“For decades, the federal pension law has ensured that retirees are given the highest level of protection. The Employee Retirement Income Security Act, or ERISA, states that pension benefits in multiemployer plans should be cut only when a plan runs out of money – and even then, the benefits of retirees should be the last to be cut. 

“It is a cruel irony that, in the 40th anniversary year of ERISA, Congress has scrapped these protections, allowing retirees’ pensions to be cut decades before a plan might become insolvent. 

“We are furious that without debate Congress has placed the burden of rescuing underfunded plans on the people who can least afford it — retirees and surviving spouses who rely on their pensions for food, medication, and other necessities. 

“There were no hearings on the retiree cutback legislation. At the 11^th hour, in a sleight-of-hand maneuver, it was added as an amendment to the Omnibus bill in the House Rules Committee at the 11th hour. Representatives and Senators could not vote against the provisions without risking a shutdown of the federal government.

“Members of Congress and retirees should have been given the time necessary to examine this legislation, engage in an open and fair debate, and develop alternatives to shore up multiemployer plans. Given that these plans are not expected to become insolvent for a decade or more, there was ample time for input.

“Congress should be ashamed. The Pension Rights Center will be working with retirees around the country to repeal this terrible measure.”

Read an updated and expanded summary of the pension-cut provisions in the 2015 Omnibus spending law.

# # #

RELATED:

• Our fact sheet on multiemployer plan funding (May 29, 2014)
• Our letter to Congress opposing provisions in the Omnibus spending bill that allow cuts to retiree pensions (December 3, 2014)
• Our statement to a House subcommittee on strengthening the multiemployer plan system (October 29, 2013)

Selected news articles:

• Cromnibus Continues Attack on Pensions
• After the new federal pension rules: What retirees need to know, Reuters, December 18, 2014
• ERISA Changes Passed as Part of Controversial Spending Bill, Institutional Investor, December 18, 2014
• Pension cuts helped keep the government open, but they hurt many retired women, Washington Post, December 18, 2014
• Reporters fail to capture implications of pension provision, Columbia Journalism Review, December 17, 2014
• President Expected to Sign Spending Bill Addressing Multiemployer Plans, 4062(e), BNA Pension & Benefits Reporter, December 16, 2014
• Congress passes major change to law on union pensions, Northwest Labor Press, December 16, 2014
• Cromnibus Continues Attack on Pensions, LaborNotes, December 15, 2014
• 4 Ways Congress Just Screwed Up Pensions, Huffington Post, December 15, 2014
• Editorial: Middle-class retirees deserve better from Congress, St. Louis Post-Dispatch, December 15, 2014
• Congress approves pension measure that could cut benefits for many retirees,St. Louis-Post Dispatch, December 14, 2014
• Pension Bill Seen as Model for Further Cuts, Wall Street Journal, December 14, 2014
• Congress’ No-Bailout Pension Plan Is No Solution for Retirees, Reuters, December 11, 2014
• Pension Deal In Spending Bill Will Cut Benefits Before Safety Net Fails, NPR, December 11, 2014
• Rep. Kline’s proposed cuts catch pensioners by surprise, Star Tribune, December 11, 2014
• Congress’ backroom pension-cutting deal is even worse than expected, Los Angeles Times, December 10, 2014
• Congress considering plan to allow pension cuts, CNN Money, December 10, 2014
• Deal to allow multiemployer pension benefits cuts, Associated Press via Yahoo! News, December 10, 2014
• Is Congress About to Cut Your Pension?, Bloomberg, December 10, 2014
• That awful congressional plan to allow pension cuts heads for enactment, Los Angeles Times, December 9, 2014
• Labor Unions Accuse Congress of Sneak Attack on Pensions in Lame Duck, National Journal, December 9, 2014
• Financial planning issues wrapped into government spending bill?, Investment News, December 8, 2014
• The lame-duck Congress plots to undermine retiree pensions, Los Angeles Times, December 5, 2014
• Bill could slash pensions across America, WOIO/19 Action News, December 5, 2014
• Congress could soon allow pension plans to cut benefits for current retirees, Washington Post, December 4, 2014
• Lame-Duck Congress Nears Last-Minute Vote On Sweeping Pension Reform, In These Times, December 3, 2014

---

Contact Name: Nancy Hwa
202-296-3776