Skip to main content

Ohio Senator Proposes Bill to Shore Up Multiemployer Pension Plans


This week, it was announced that Democratic Senator Sherrod Brown from Ohio, is supporting a bill in Congress that would shore up multiemployer pension plans in his state.  Many of those plans have come under scrutiny as of late with predictions that many will go insolvent in the next decade if something is not done to prop them up.

Under the Senator's plan, a new Treasury Department office would be created that would oversee money lent to pension plans.  (This new office, the Pension Rehabilitation Fund, would supervise the loans that would come from the sale of Treausry bonds to private investors.)  Under this proposed legislation, no fewer than seven pension plans in Ohio would be able to borrow enough money to remain solvent and continue providing pensions to its retirees.  Senator Brown's proposal would essentially prop up a number of well known pension plans in the state including the United Mine Workers Pension, the Ironworkers Local 17 Pension Plan, and the Ohio Southwest Carpenters Pension Plan.  

Critics of this proposal have argued that it is an attempt by a Democratic Senator who has been rumored to be considering a run for higher office, using his position to placate his base and build good will among the labor unions.  It is quite possible this criticism is correct, but I believe the bigger issue is allowing these pension plans to continue to borrow money and further dig themselves into a hole.  At some point, these pension plans risk becoming insolvent if there is not a significant cash infusion to prop them up.  However, eventually (perhaps in the coming years), it will be time to pay the piper.  When that happens, some generation of retirees will be left holding the bucket and with a pension plan that has collapsed.  Is this proposed legislation simply plugging a leaking dam with a piece of gum?  At some point, allowing pension plans to continue borrowing money will no longer be a realistic solution...


For additional information:  https://www.google.com/amp/www.daytondailynews.com/news/local-govt--politics/bill-would-allow-pension-funds-borrow-money-cover-losses/l0kBYX4Wl4WrmG6OGyBCqL/amp.html

Comments

Post a Comment

Popular posts from this blog

NLRB: Discussion Among Employees About Tip Pooling is Protected Concerted Activity

  This Advice Memorandum from the National Labor Relations Board’s Associate General Counsel, Jayme Sophir, addressed whether employees which discussed and complained about tip pooling at work constituted protected concerted activity. In relevant part, an employer in New York operated a chain of steakhouses.  While tip pooling was in place at these steakhouses, some of the employees objected to it on the grounds that it was not transparent and improperly divided tips among the workers.  Employees were told not to complain or talk to each other about the tip pool and were told that doing so would endanger their jobs.  Despite the employer later attempting to provide some clarity as to how the tips were being divided, rancor still existed among some employees.  At one point, the employees were told by a general manager that some employees that had been talking about the tip pool were “cleared out” and the employer would continue to do so. In the Advice Memorandum,...
Post a Comment
Read more

Breaking: Labor Secretary Rumored to Be Leaving Administration

A few hours ago, word leaked out that Labor Secretary Marty Walsh (“Walsh”) is in the midst of negotiations to head up the NHL Players Union and leave his position at the Labor Department. Walsh, who has served as the sole Labor Secretary under President Biden, has taken part in a labor renaissance of sorts as support for organized labor has increased during his term as Labor Secretary (although the number of workers that have joined a union over the past two years has not grown as mush as some expected.)  He has also overseen the ongoing negotiations with rail workers over a new contract, although that matter is still on shaky ground and playing out as we speak. As for who might step into the vacant Labor Secretary role, there are already rumblings that President Biden should nominate Deputy Labor Secretary Julie Su (a strong labor advocate) or even a progressive like Senator Bernie Sanders.  Until Walsh officially gives his notice, however, I would expect some/many potential...
Post a Comment
Read more

New Jersey Governor Chris Christie Vetoes Minimum Wage Hike

A few months ago, readers might remember that I pointed out that the New Jersey Legislature had voted to approve a minimum wage hike in the state .  Under the approved legislation, the minimum wage rate would rise to $10.10/hour in the next year and at least $15/hour over the next five.  (The current minimum wage rate in the state is $8.38/hour).  In that article, I had noted that the bill was then going to go before Governor Chris Christie for his approval or veto. As I had suggested previously, I thought that the Governor would likely veto the bill based upon his prior actions and comments on similar legislation.  Well, a few days ago, Governor Christie did just that and vetoed the bill on the grounds that it "would trigger an escalation of wages that will make doing business in New Jersey unfathomable."  Pointing to the increase in hourly minimum wage rates, the Governor referred to the bill as a "really radical increase."  (It is interesting to c...
Post a Comment
Read more