House Passes Bill to Prop Up Insolvent Pension Funds

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House Passes Bill to Prop Up Insolvent Pension Funds

Many union-managed pension funds are in big financial trouble. Under a bill approved by the House of Representatives, these funds may be headed for a federal bailout.

 

By a vote of 264-169, the House passed H.R. 397 on July 24. Here is how VoteSpotter describes the bill:

 

To authorize government "loans" that would be "forgivable" to massively underfunded and insolvent multi-employer pension funds, which are usually managed by labor unions.

 

This bill affects pension funds that are sponsored by multiple employers but managed by unions. Numerous plans do not have enough funding to pay full benefits in the years to come. Supporters say that the bill is necessary to ensure that people who were promised pension benefits actually receive them. They argue that without this bill, people would be left without the retirement funds they were promised.

 

Opponents counter that this bill is special interest legislation that benefits the unions who have mismanaged these pension funds. They say that taxpayers will be bearing the burden of propping up the funds and paying for the mistakes of union officials.

 

The bill now moves to the Senate, where Majority Leader Mitch McConnell is unlikely to schedule it for floor action.

 

Do you think that the federal government should provide forgivable loans to union-sponsored pension plans to keep them from going insolvent?

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