Stars Have Aligned for Union Pension Funding Action
Sources hopeful for Congressional action say arguments about saving union pensions should be linked to the broader social and economic challenges facing the U.S. and its labor force.
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A little over a month ago, Russell Kamp, managing director at Ryan ALM, spoke with PLANSPONSOR about the funding crisis facing many, but not all, union-sponsored multiemployer pension funds.
At the time, Kamp said much was at stake for union pensions based on the outcome of the two early January Senate runoff elections in Georgia. Like many other observers commenting at the time, Kamp felt it was likely that at least one of those elections would be won by a Republican, and the assumption of divided government made him fairly pessimistic about the possibility of serious union pension reform occurring this year.
Outlook Improves for Multiemployer Reform in 2021, 2022
Democratic control of Congress could help break the deadlock over passing legislation to protect pensions and the PBGC.
There’s an improved chance Congress will pass legislation over the next year or two to prevent multiemployer pension plans and the Pension Benefit Guaranty Corporation (PBGC)’s multiemployer insurance program from becoming insolvent, according to law firm Morgan Lewis.
In a blog post on the firm’s website, Morgan Lewis Senior Director Timothy Lynch and Partner Daniel Salemi wrote that the biggest factor that could lead to a legislative solution is the fact that the Democratic Party controls the White House and both houses of Congress. They also say the Biden administration may see greater urgency in moving for a solution due to the major economic fallout that would occur if PBGC’s multiemployer program were to become insolvent in 2026, as is currently projected.
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Georgia runoffs are ground zero for workers and their allies December 14, 2020 11:37 AM CDT By Mark Gruenberg
Lee Saunders, president of AFSCME says his union is making a major effort in Georgia, aiming to take control of the Senate away from GOP Majority Leader Mitch McConnell. | afscme.org
It’s too bad Ray Charles, Hoagy Carmichael, and Stuart Gorrell aren’t with us anymore. Their song, “Georgia On My Mind” is a perfect description of the Peach State’s role as ground zero for control of the U.S. Senate in the next Congress a vital issue to workers nationwide.
A Conversation With a Union Pension Funding Advocate
One outspoken advocate for the Butch Lewis Act says the time is ripe for addressing the funding challenges faced by union sponsored multiemployer pension plans.
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Russell Kamp, managing director at Ryan ALM, recently sat down for a wide-ranging discussion with PLANSPONSOR in which he spoke in no uncertain terms about the need to immediately address the union multiemployer pension funding crisis.
For context, Ryan ALM’s stated mission is to solve liability-driven problems faced by pensions and other institutional investors through the provision of “low-cost, low-risk solutions.” Additionally, Kamp himself was on the team of government and industry professionals that drafted the Butch Lewis Act. That legislation would, among other features, provide funds for 30-year loans and new forgivable financial assistance, in the form of government grants, aimed at supporting the most financially troubled multiemployer pens