October 2009 Bulletin, “Bill to Ease Multiemployer Pension Funding Is Introduced in Congress”

Abstract

Funding relief legislation for multiemployer pension plans was introduced in the U.S. House of Representatives on October 27. H.R. 3936, the Preserve Benefits and Jobs Act (PB&J Act), sponsored by Representatives Earl Pomeroy (D-ND) and Patrick Tiberi (R-OH), includes extensive relief for single employer plans as well. This is a notable starting point, but Congress is still a long way from passing legislation to make it easier for trustees, employers and unions to deal with the impact of the 2008 market losses on pension plan funding. The proposed PB&J Act incorporates most of the proposals put forth by the Multiemployer Coalition, a broad group of employers, employer associations, unions and multiemployer funds that represents the full spectrum of multiemployer stakeholders and is spearheaded by the National Coordinating Committee for Multiemployer Plans (NCCMP).

Like the coalition's proposal, the bill would make two general types of changes: adjustments to the multiemployer funding and zone rules to help strong plans recover, and improvements to the multiemployer plan safety net to provide more benefit security for participants in plans that otherwise may be facing insolvency. This Bulletin gives an overview of the major elements.

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