Today the International Brotherhood of Teamsters will be rallying for the repeal of a pension reform law on the West Front Lawn of the U.S. Capitol Building in Washington, D.C from 8:30 a.m. to 3:30 p.m.
Two years ago the Multiemployer Pension Reform Act (MPRA) of 2014, or Kline-Miller Pension Act, was passed. This law allows multi-employer pension plans at risk of failure to reduce pensioner benefits to as little as $13,000 a year — significantly less than was promised when current pensioners paid into the system. The law was passed amid concerns that the Pension Benefit Guaranty Corp, which functions as insurance in case funds fail, may fail itself with the large amounts of potential pension fund defaults.
As many as 400,000 pensioners might be affected if this law isn’t repealed or amended. Those attending the rally believe there’s a better way to keep pension funds going than repealing promised benefits from current retirees and widowers.
In 2015 Senator and now presidential hopeful, Bernie Sanders (I-VT) co-sponsored a bill with Senator Marcy Kaptur (D-OH) that would force pension funds to pay out the funds promised to current retirees. The Keep Our Pension Promises act would pay for these gaps in funding by removing two unnecessary tax cuts aimed at large businesses instead of taxpayers. The aim of the bill is to avoid punishing those who paid into the system for the failures of that system.
Multiemployer pension funds have lost money from declining workers, underestimated life expectancy and overestimated interest rates. Some people are also calling for investigations of potential wrongdoing with regards to lost funds. Fund managers may have taken unnecessary risks or engaged in other harmful practices in order to maximize profits.
Mike Walden, chairman of the Northeastern Ohio Committee to Protect Pensions, wrote in a message to those participating in the rally, "Thank all of you for your support... to get the MPRA 2014 repealed, changed or modified in a Democratic way... thanks to all for being proactive to get the Central States Application [to reduce benefits] denied, to make sure all reasonable solutions are exhausted prior to taking our money and lives away from us." For many, the repeal of the act means the difference between having a comfortable retirement or having to work and living in poverty at age 50 and beyond. Many of the pensioners have worked decades to have the ability to retire and feel as though they're being punished unfairly for the failings of the pension fund.
Detailed information for those hoping to attend the rally can be found on the Teamsters website.
