Statements on Introduced Bills and Joint Resolution

Floor Speech

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Mr. GRASSLEY. Mr. President, in late June, I came to the floor to speak about the need to fix the multiemployer pension system and how that system is failing its employees and retirees. I spoke about the need to secure retirement benefits for the millions of Americans who will start to see plans fail and benefits cut in the coming years if Congress doesn't fix this problem.

For the past 2 weeks, Chairman Alexander and I were negotiating with our Democratic colleagues to do just that--fix the system so future retirees and retirees now would not lose out on what they were promised. Those negotiations were very constructive, and I believe that both sides worked in good faith. While both sides agreed to make significant changes, in the end, we weren't able to find a compromise that satisfied our respective principles and objectives for resolving this situation.

Here is the hang up--time. Now at the end of the session, with the end-of-the-year agenda and adjournment of the Congress, we just ran out of time. So in the midst of yearend appropriations and COVID relief negotiations, there simply wasn't enough time to reconcile our differences on how to fix this failing system.

My hope had been to use the last 8 months to negotiate a solution in a thoughtful and measured manner, instead of like now, in the heat of a complex yearend bill. But sadly, those 8 months didn't produce results.

From the beginning, we have agreed that Federal funds will be needed to solve the crisis in the short term--yes, money from the Treasury for pension plans that are in trouble now. But we have been equally resolute that reforms are essential to ensure the system can be self- sustaining in the long term. So we were trying to find a short-term solution that would involve the injection of Federal dollars, but we wanted a long-term solution that would make sure that private pension plans were self-sustaining and not relying upon the Federal Treasury. Otherwise, taxpayers will be perpetually subsidizing a private sector system of employee benefit promises.

Last November, Chairman Alexander and I presented our comprehensive approach to rescue and reform the multiemployer pension system, which we have been working on and improving ever since. The product was improved with an amazing amount of input from workers, retirees, unions, employers, actuaries, academics, plan officials, and even members of the general public. Something as big as this needed to involve all of those people being at the table.

Today, Chairman Alexander and I will introduce a revised version of that plan, the Chris Allen Multiemployer Pension Recapitalization and Reform Act. This legislation served as the basis for our recent negotiations and is the product of years of work with Chairman Alexander to produce a serious, responsible plan that can provide relief to failing plans and to protect retirees' benefits.

It is also designed to ensure the long-term solvency of the Pension Benefit Guaranty Corporation's multiemployer insurance fund, based on the many comments and proposals we received to the original Grassley- Alexander plan released last November.

We believe this legislation would ensure that the PBGC's multiemployer insurance fund remains solvent over the long term after the initial rescue of the currently failing plans. But, most importantly, this legislation would reform the system to prevent this from happening again.

I would also like to note that the bill is named after Chris Allen, who was a dedicated member of my Finance Committee staff, who passed away nearly 1 year ago at too young of an age. Chris poured thousands of hours of work into developing, drafting, and perfecting the Grassley-Alexander plan. I am grateful for all the work that Chris did, and I am proud this legislation bears his name.

I am also grateful to Andy Banducci, who helped us continue Chris's work while on detail to the committee from the PBGC for several months earlier this year. His expertise and commitment, especially during the pandemic, were essential to bringing this legislation to completion.

Lastly, Mark Warren of the Finance Committee staff has led my team on this very important issue with the help of Jamie Cummins.

This bill would not be possible without their efforts. So I thank Mark, Jamie, Andy, and Chris for their dedicated service.

Let me close by stressing two points for my Democratic colleagues. I appreciate the Democrats' professional and good-faith effort to try to find an agreement to this important issue. Although we were not able to reconcile our differences before the clock ran out, we need to carry that work forward, and I remain ready to continue that discussion. I want to make clear that, while the last 2 years I have been chairman of the Finance Committee, I won't be chairman the next 2 years, and we will be working under the leadership of the next chairman, Senator Crapo, if Republicans continue to be in the majority.

These issues are not simple, and as I said in June, delaying the solution is only going to make the whole effort more costly. We should continue to work together to find a solution for the 10 million workers and retirees in these multiemployer plans. America's retirees deserve it.

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