A representative from the National Coordinating Committee for Multiemployer Plans (NCCMP) told a key Congressional committee on Thursday that the rules for multiemployer pension funds need to be reformed. The Teamsters Union is one of the lead labor organizations in NCCMP.
The NCCMP has proposed to Congress a legislative proposal that would help strengthen the Central States Pension Fund.
On Thursday, the NCCMP’s Judith Mazo testified before the powerful House Ways and Means Committee. The committee heard recommendations from the private sector on how to deal with pension plans that have been hurt by the global financial crisis.
The message from labor and business officials as well as pension experts was clear: Without additional relief, companies will cut jobs and investments, further weakening the economy.
House Ways and Means Chairman Charles Rangel, D-N.Y., acknowledged that the impact of the recession on pension funding has been “very severe.”
“Employers are faced with the struggle of making up significant pension plan losses while operating their businesses in a challenging economy,” Rangel said.
Mazo urged the committee to update the law so that the Pension Benefit Guarantee Corporation would assume the pension obligations for retirees who worked for companies that have gone out of business.
Such a reform would strengthen the Central States Fund as well as Teamster employers who contribute to it.