Scott, Kline Joint Statement on Multiemployer Pensions
WASHINGTON – House Education and the Workforce Committee Ranking Member Robert C. “Bobby” Scott (VA-03) and Chairman John Kline (MN-02) issued the following joint statement after the Department of Treasury issued its decision regarding the Central States Pension Fund:
“A pension crisis has been growing for decades, threatening the retirement security of millions of Americans. That’s why Congress spent years working with labor leaders, retiree advocates, and employers on a set of bipartisan reforms that provide trustees with the tools to minimize the effect of painful benefit cuts required when plans become insolvent. It is the responsibility of the trustees and the Department of Treasury to determine how and when to use those tools.
“The Treasury Department has concluded this application does not meet all the requirements of the law. This decision will temporarily spare many retirees from benefit cuts, but we must remain mindful that this pension plan continues to spiral toward insolvency. All of the men and women covered by this pension plan – not just those who would be impacted by the proposed cuts – are facing an even worse outcome within several years.
“It’s now up to the trustees of Central States, working with employees, retirees, and the union, to come up with a responsible solution that saves the plan and helps retirees avoid the risk of losing everything. In the meantime, Congress will continue its efforts to strengthen the multiemployer pension system.”
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