Stevens Leads Bipartisan Push to Fix Multi-Employer Pension Crisis

WASHINGTON — Today, Congresswoman Haley Stevens (MI-11) led a bipartisan group of 71 Members of Congress to call on House Leadership to address the multi-employer pension crisis in forthcoming coronavirus legislation.

The Butch Lewis Act, which passed the House of Representatives with bipartisan support, is long-overdue legislation to save vulnerable multi-employer pensions by creating a Pension Rehabilitation Administration (PRA) within the Treasury Department and allowing failing pension plans to borrow money from the PRA to remain solvent. The coronavirus pandemic has created even more uncertainty for retirees who are worried about losing their hard-earned pensions, including more than 40,000 Michiganders.  

“The reduced bond yields and market volatility we are now seeing in the face of the COVID-19 pandemic is putting further strain on the returns and risk of pension plans,” the lawmakers wrote. “By doing nothing to keep our multi-employer pension plans afloat, we risk costing taxpayers up to $240 billion. In contrast, acting swiftly to save these pension plans will not only provide a reasonable solution to our pension crisis, but it would also cost taxpayers $34 billion – a fraction compared to doing nothing at all. Further inaction could place an even bigger burden on taxpayers and prolong the uncertainty of pension securitization for so many Americans. We thank you for your efforts to advance this crucial legislation through regular order and urge you to include the Butch Lewis Act in forthcoming coronavirus legislation or, if necessary, a similar solution on which key stakeholders can agree will protect retiree benefits and provide the financial stability that multiemployer plans need.”

In addition to Rep. Stevens, the letter was signed by Reps. Peter King (NY-02), Stephen Lynch (MA-08), Tim Ryan (OH-13), Lori Trahan (MA-03), Adam Smith (WA-09), Lucy McBath (GA-06), Mary Gay Scanlon (PA-05), Jahana Hayes (CT-05), Angie Craig (MN-02), Elaine Luria (VA-02), Andy Levin (MI-09), Daniel Kildee (MI-05), Jan Schakowsky (IL-09), Jerrold Nadler (NY-10), Diana DeGette (CO-01), Daniel Lipinski (IL-03), Brenda Lawrence (MI-14), Marcy Kaptur (OH-09), Debbie Dingell (MI-12), Abby Finkenauer (IA-01), Susan Wild (PA-07), Chellie Pingree (ME-01), Darren Soto (FL-09), Ruben Gallego (AZ-07), Anthony Brindisi (NY-22), Paul Tonko (NY-20), Tom Suozzi (NY-03), John Larson (CT-01), Suzan DelBene (WA-01), Brad Schneider (IL-10), Marcia Fudge (OH-11), David Trone (MD-06), Conor Lamb (PA-17), Ilhan Omar (MN-05), Frederica Wilson (FL-24), Eliot Engel (NY-16), Joseph Kennedy (MA-04), Vicente Gonzalez (TX-15), Dina Titus (NV-01), Andy Kim (NJ-03), Donna Shalala (FL-27), Brian Fitzpatrick (PA-01), Joyce Beatty (OH-03), Suzanne Bonamici (OR-01), Mark Pocan (WI-02), Peter Visclosky (IN-01), Max Rose (NY-11), Antonio Delgado (NY-19), Salud Carbajal (CA-24), Emanuel Cleaver (MO-05), Albio Sires (NJ-08), Dwight Evans (PA-03), Eddie Bernice Johnson (TX-30), Mike Doyle (PA-18), Bill Foster (IL-11), Joaquin Castro (TX-20), Denny Heck (WA-10), David Scott (GA-13), Joe Neguse (CO-02), Joe Courtney (CT-02), Derek Kilmer (WA-06), Frank Pallone (NJ-06), Dean Phillips (MN-03), Ron Kind (WI-03), Annie Kuster (NH-02), Bill Pascrell (NJ-09), Brian Higgins (NY-26), Tom Malinowski (NJ-07), Pete Stauber (MN-08), and Chris Smith (NJ-04).

The full text of the letter can be found here or below.

“Dear Speaker Pelosi, Leader McCarthy, Chairman Neal, Ranking Member Brady, Chairman Scott, and Ranking Member Foxx, 
 
Thank you for your ongoing efforts to protect the medical and fiscal wellbeing of our country during this unprecedented COVID-19 crisis. We write to urge you to consider the pressing needs of our retirees in any forthcoming coronavirus legislation. 
 
As you know, the Butch Lewis Act, which passed the House with bipartisan support on July 24, would provide much needed relief for over 1.3 million American workers and retirees. Yet this crisis remains unresolved for so many American families who, through no fault of their own, are at risk of losing their hard-earned retirement. 
 
The reduced bond yields and market volatility we are now seeing in the face of the COVID-19 pandemic is putting further strain on the returns and risk of pension plans. By doing nothing to keep our multi-employer pension plans afloat, we risk costing taxpayers up to $240 billion. In contrast, acting swiftly to save these pension plans will not only provide a reasonable solution to our pension crisis, but it would also cost taxpayers $34 billion – a fraction compared to doing nothing at all. Further inaction could place an even bigger burden on taxpayers and prolong the uncertainty of pension securitization for so many Americans. 
 
We thank you for your efforts to advance this crucial legislation through regular order and urge you to include the Butch Lewis Act in forthcoming coronavirus legislation or, if necessary, a similar solution on which key stakeholders can agree will protect retiree benefits and provide the financial stability that multiemployer plans need. 
 
Thank you for your continued attention to this matter.” 

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