Introduction of the "Keep Our Pensions Promise Act"

Floor Speech

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Ms. KAPTUR. Mr. Speaker, I rise today to introduce the ``Keep Our Pension Promises Act.''

Pensions are one of the surest means to afford millions of middle class families an opportunity for security in retirement, to enjoy their golden years without being afraid that they haven't saved enough money or what they have saved could run out. Pensions guarantee our senior citizens will know they have a check arriving every month for as long as they live. This is true retirement security.

For forty years the federal pension law has ensured that retirees are given the highest level of protection. For forty years, the Employee Retirement Income Security Act, or ERISA, controlled that pension benefits in multiemployer plans should be cut only when a plan runs out of money--and even then, the benefits of retirees should be the last to be cut. This has held tried and true because it was the right thing to do. Retirees worked their entire life to earn the promise and benefit of a guaranteed pension.

This was all uprooted by Congress' December vote on the Omnibus funding bill. A provision that was stuck into the 1,600 page Omnibus bill, at the last minute, forced a decision between shutting down the government and cutting retiree's pension benefits for the first time ever.

An estimated 1 million participants, including retirees, are in multi-employer pension plans that federal officials say are in danger of running out of money in the near future. The provision Congress passed allowed for the first time for the benefits of current retirees to be cut as part of a deal to address the fiscal distress confronting some of the nation's multi-employer pension plans, having a direct impact on 1.5 million American retirees.

This was wrong and today I introduce the ``Keep Our Pension Promises Act'' with Senator BERNIE SANDERS of Vermont, to correct this short sighted effort.

This Act corrects the injustices bestowed upon our most vulnerable retirees by restoring anti-cutback rules so that retirees in financially troubled multi-employer pension plans are protected from having their earned benefits cut.

It will allow plans to partition off ``orphaned'' participants into a separate plan, giving participating employers relief from having to shoulder the full financial burden and risk of underfunded ``orphaned'' participants--ensuring the ability for plans to become financially secure once more.

Recognizing that funding is the ultimate concern, the act shores up the Pension Benefit Guaranty Corp and creates a legacy fund to ensure participants in partitioned plans will continue to receive the benefits they depend upon. The costs to create this fund are covered by closing tax loopholes the very wealthy use to accumulate expensive artwork and avoid estate and gift taxes.

Further the bill ensures pension obligations are prioritized during bankruptcies, which will help the remaining employers in the plan by making it less likely they become responsible for underfunded orphan plans.

Our pension system has allowed our senior citizens the opportunity to enjoy their years of hard work in retirement and receive the payouts they spent a life time to earn. This effort recognizes that shared sacrifices are the appropriate course of action to address weakness in pension plans. I encourage my colleagues to support this measure and correct the misguided action passed in last year's Omnibus funding bill.

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