b'BNA Construction labor ReportFive Ideas for Fixing Unionized Workers Pension Crisis ederal lawmakers are once againInternational Brotherhood of Teamsters. assumedinterestratesforrepayingloans F trying to come up with a wayThose loans would be for 30 years and carryposeariskthatplanswouldfacefuture to protect the pensions of moreinsolvency.Inaddition,despitebeing thanonemillionunionizedlow interest rates of about 3 percent. Planscirculated for months, it has yet to find a workers. would use the loans to pay benefits and tobacker in Congress.make long-term low-risk investments. Plans ThistimeitsSenatorSherrodBrownwouldberequiredtomakeonlyinterest3. New Design From NCCMP (D-Ohio) and Rep. Richard Neal (D-Mass.)payments for the first 29 years. In the final throwing out a proposal for fixing whatsyear, they would repay the entire principalTheNationalCoordinatingCommittee known as multiemployer pensions. The pairand the remaining interest owed. on Multiemployer Plans, a group made up introduced legislation in both houses Nov.of employers and unions, has circulated a 16 that they say will keep the multiemployerThelegislationwouldrequireCongressproposal that would have the U.S. Treasury system afloat. toprovidefundstothePBGCtobeprovide long-term, low-interest loans to plans used for financial assistance to plans thanthat couldnt clear the MPRAs hurdles and Their bills came the same day the Pensioncant borrow enough to meet their retireeareatsubstantialriskofinsolvency.The Benefit Guaranty Corporationthe federalobligations. NCCMP lobbied for passage of the MPRA.agency that serves as a backstop for pension plansreleased a report saying the agencyBottom Line: The bills are seen as a firstIn general, the loan program would lend isrunninga$65.1billiondeficitforitsstep toward further negotiations, but anyfunds to qualifying critical and declining multiemployer pension program. The agencyproposalthatmaybeviewedasputtingstatusplansat1percentinterestfor30 said its likely to be insolvent by 2025. government money at risk may be a long- years. The loans would be interest only for shot in the current Congress. the first 15 years, and then require a level The legislation by Brown and Neal, calledpayment of principal and interest for the the Butch Lewis Act, is one of at least five2. UPS Loan Proposalremaining 15 years. To be eligible for a loan, proposals being batted around to try andplans would need to show they can achieve fix the multiemployer pension system. MoreUPS has a proposal that would provide upsolvency and repay their loans.than 100 pension funds covering workers intothreesuccessivelowinterestlong-term unionized industries face insolvency in thefederal government loans to troubled pensionThe proposal would also require the loan coming years. plans to cover their cash flow shortage foraccount to be returned to the government 5 years each. intheeventofaninsolvencyoramass A law from 2014, the Multiemployer Pensionwithdrawal of employers.Reform Act, was intended to fix the troubledPlan participants would see benefit cuts of pension system, but it hasnt quite done theup to 20 percent across the board. PlansBottom Line: The NCCMP was able to push job. Lawmakers, as well as major employerswould be obligated to begin interest-onlyCongress to pass the MPRA three years ago, such as United Parcel Service, have thrownrepayments after 5 years. Loan repaymentsso it may have the best shot among the other out proposals for fixing the pension system.would be ensured through the creation ofproposals to gather interest in Congress. Its Almost all of the proposals call for someariskreservepoolfundedbyemployers,odds still appear to be long.sort of loan program for the plans. participants, and unions.4. Funding From Credit Union Profits Heres a look at the five proposals: UPS has a significant interest in solving the pension crisis. It could be on the hook forThe proposal from the American Families 1. The Butch-Lewis Actup to $4 billion in plan contributions if theforPensionSecurity,basedinKingston, 400,000-member Central States, SoutheastN.Y.,wouldalsohavetheU.S.Treasury TheButchLewisActwouldcreatetheand Southwest Areas Pension Fund becomesissue low interest loans to plans in critical PensionRehabilitationAdministration,insolvent.Thatfundisprojectedtobeand declining status.anewfederalofficewithintheTreasuryinsolvent by late 2024.DepartmentthatwouldsellbondstoThegroupwantstocreateafederally financial institutions to raise money to fundBottom Line: The proposal has been viewedchartered special-purpose credit union for loans to financially troubled plans. The ideabysomeasconceptuallygood,buttherethemorethan10millionmembersof comes, in part, from a proposal from theare concerns that its use of overly generousmultiemployer plans and their families. The 14 www.mrca.orgMidwest Roofer'