Buried in the two-year budget deal emerging from the Senate Wednesday is language creating a bipartisan commission to address the impending insolvency of collectively bargained multiemployer pension plans and the government agency that insures them.
The budget creates a joint select committee on multiemployer pensions, including six members from the Senate and six from the House. Each cohort will be split evenly among Republicans and Democrats.
The commission is tasked with reporting a bill by the last week of November.
If the majority from each chamber on the commission can reach a legislative solution, the bill will get an expedited vote in both chambers without amendments to the bill, according to Geoff Manville, a principal with the government relations team at Mercer.
“We’ve known this is the most pressing issue among retirement policy 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 a solution for troubled multiemployer plans.
“If the commission can get legislation to the floor, and it passes, that could unlock the dam for other retirement policy initiatives,” said Manville. “A lack of a solution for the multiemployer retirement system has held up other retirement proposals in previous legislative sessions.”
Democrats have been negotiating for a fix for troubled multiemployer plans throughout the contentious budget debate.
Last year, Sen. Sherrod Brown, D-OH, introduced the Butch Lewis Act, which would create a new agency in the Treasury Department to issue government backed debt instruments. Proceeds on the sales of the new Treasury bonds would be used to channel funds to imminently insolvent plans.
Many have speculated that Republicans would be hard pressed to support the bill. Rep. Peter King, R-NY, has lent his support.
But Manville noted that other Republican lawmakers from states with constituents invested in multiemployer plans also have much at stake, and have signaled intent for a solution. Manville cited Sen. Rob Portman, R-OH, and Sen. Shelley Moore Capito, R-WV, as examples.
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Nick Thornton
Nick Thornton is a financial writer covering retirement and health care issues for BenefitsPRO and ALM Media. He greatly enjoys learning from the vast minds in the legal, academic, advisory and money management communities when covering the retirement space. He's also written on international marketing trends, financial institution risk management, defense and energy issues, the restaurant industry in New York City, surfing, cigars, rum, travel, and fishing. When not writing, he's pushing into some land or water.
