Buried in the two-year budget deal emerging from the SenateWednesday is language creating a bipartisan commission to addressthe impending insolvency of collectively bargained multiemployer pension plans and the governmentagency that insures them.
|The budget creates a joint select committee on multiemployer pensions, including six membersfrom the Senate and six from the House. Each cohort will be splitevenly among Republicans and Democrats.
|The commission is tasked with reporting a bill by the last weekof November.
|If the majority from each chamber on the commission can reach alegislative solution, the bill will get an expedited vote in bothchambers without amendments to the bill, according to GeoffManville, a principal with the government relations team atMercer.
|“We’ve known this is the most pressing issue among retirementpolicy for this year,” Manville told BenefitsPRO.
|The success for a host of other retirement policy initiatives,most of which have bipartisan support, could be contingent on asolution for troubled multiemployer plans.
|“If the commission can get legislation to the floor, and itpasses, that could unlock the dam for other retirement policyinitiatives,” said Manville. “A lack of a solution for themultiemployer retirement system has held up other retirementproposals in previous legislative sessions.”
|Democrats have been negotiating for a fix for troubledmultiemployer plans throughout the contentious budget debate.
|Last year, Sen. Sherrod Brown, D-OH, introduced the Butch LewisAct, which would create a new agency in the Treasury Department toissue government backed debt instruments. Proceeds on the sales ofthe new Treasury bonds would be used to channel funds to imminentlyinsolvent plans.
|Many have speculated that Republicans would be hard pressed tosupport the bill. Rep. Peter King, R-NY, has lent hissupport.
|But Manville noted that other Republican lawmakers from stateswith constituents invested in multiemployer plans also have much atstake, and have signaled intent for a solution. Manville cited Sen.Rob Portman, R-OH, and Sen. Shelley Moore Capito, R-WV, asexamples.
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