Pension Committee Fails to Find Solutions to Solve Multiemployer Pension Crisis by Deadline, Commit to Continue Working on Issue

The Joint Select Committee on Solvency of Multiemployer Pension Plans had until Nov. 30 to issue recommendations for an overhaul of the nation’s pension system, however, they issued a statement declaring a legislative solution will not be found by the deadline. The statement does highlight the need to find a solution and they pledge to continue to work together. At this point a timeframe for any future action remains uncertain but AGC is committed to finding legislative solutions to advance our priorities.

Initial proposals of the committee, which did not advance, gave AGC significant concerns. Those concerns centered around the financial burden that would be placed on otherwise healthy plans at the expense of funding plans otherwise heading toward insolvency. The punitive changes were largely based on changes to funding rules and premium increases that would negatively impact plans, contributing employers and participants.

AGC’s priorities for pension reform continue to include authorizing alternative plan designs such as Composite Plans — as included in the GROW Act — and doing no harm to the system. AGC will continue to advocate for those priorities over the remaining days of this Congress and the next.

For more information, contact Jim Young at youngj@agc.org or (202) 547-0133.