Both private and public pensions have been having major funding issues and struggling to get a good ROI for a number of years.
So it’s no surprise that any sort of economic relief package presented to Congress would include funds for pensions. Especially since a “bailout” culture seems to have taken root in America.
Where pension debt is a looming danger to taxpayers, via Texas Public Policy Foundation
The recent $1.9 trillion COVID-19 stimulus bill
The New York Times reported that it contains $86 billion for struggling pensions:
The $86 billion is a taxpayer bailout for
about 185 union pension plans that are so close to collapse that without the rescue, more than a million retired truck drivers, retail clerks, builders and others could be forced to forgo retirement income.
Monday, March 15, 2021
The
American Rescue Plan Act of 2021 includes a modified version of the Butch Lewis Act, referred to as the Emergency Pension Plan Relief Act of 2021 (EPPRA), which restores to financial health more than 100 failing multiemployer pension plans. However, the measure falls well short of any meaningful long-term funding reform.
EPPRA is the result of a protracted attempt (including multiple proposals from both sides of the aisle) to address the multiemployer pension plan funding crisis. The Democrats have long-pursued direct government financial assistance to plans, while Republicans have focused on a new premium structure and copayments from stakeholders such as active employees and most retirees. Now that EPPRA is the law of the land, employers want and need to know how EPPRA will affect employer obligations for both contributions and withdrawal liability.
President Biden has signed into law the American Rescue Plan Act of 2021. The act contains a number of provisions affecting employee benefit plans. A description of some of these.
Struggling Multiemployer Pension Plans Receive a Lifeline Under the American Rescue Plan Act of 2021 | Perkins Coie jdsupra.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from jdsupra.com Daily Mail and Mail on Sunday newspapers.