Congress has passed a $1.1 trillion omnibus spending bill that includes a provision giving trustees of multi-employer pension plans the ability to cut pensions earned by 1.5 million workers and retirees. Many pensions will be cut by up to 50 percent to retirees who are in no position to make up for the monthly shortfalls.
Reportedly, Congress acted out of concern about the $42.4 billion that the Pension Benefit Guaranty Corporation says it is short for needed payouts if at-risk multi-employer pension plans failed. Does this remedy open the door for the PBGC and single-employer pension plan sponsors to seek the same relief? Based on the way the bill was written, there is reason to think so. Congress needs to amend the provision to protect single-employer pension plan retirees.
Van Dever, Parkville