WASHINGTON, D.C. | December 13, 2012 -
WASHINGTON, D.C. – On Wednesday, December 19 at 10:00 a.m., the Subcommittee on Health, Employment, Labor, and Pensions, chaired by Rep. Phil Roe (R-TN), will hold a hearing entitled, “Challenges Facing Multiemployer Pension Plans: Evaluating PBGC’s Insurance Program and Financial Outlook.” Pension Benefit Guaranty Corporation (PBGC) Director Joshua Gotbaum will testify. The hearing will take place in room 2175 of the Rayburn House Office Building.
Multiemployer defined benefit pension plans are created by collective bargaining agreements. The plans are administered jointly by a board of trustees equally representing employers and union officials. An aging workforce, weak economy, and fewer contributing employers threaten the long-term health of the multiemployer pension system. As a result, the plans are increasingly reliant upon PBGC for financial assistance, and the agency now faces $7 billion in future obligations.
In 2006, Congress approved legislation to strengthen the multiemployer pensions by enhancing disclosure requirements and incorporating “zone rules” to highlight and improve a plan’s financial health. With provisions in the law set to expire and policymakers expected to consider possible reforms during the 113th Congress, Wednesday's hearing will provide an opportunity to discuss the ongoing challenges facing PBGC and the multiemployer pension system. To learn more about Wednesday’s hearing, visit http://edworkforce.house.gov/hearings.
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Pension Benefit Guaranty Corporation