Posts tagged Pension Benefit Guaranty Corporation
PBGC Bailed Out Five More Union Pensions Last Week
January 30, 2023 // Last week, the Pension Benefit Guaranty Corporation (PBGC) announced five more failing union pension plans will receive taxpayer moneys to ensure the pensions maintain the ability to pay plan participants. In total, the PBGC will dole out $277.6 million in “special finance assistance,” covering 2,274 pension plan recipients—which averages to nearly $125,000 per participant, with some receiving nearly up to $158,000 from the PBGC.
Biden mends bridges with unions after rail dispute
December 12, 2022 // President Joe Biden has returned to the good graces of labor unions by announcing a $36 billion pension fund bailout that will prevent more than 350,000 truck drivers, warehouse workers, construction staff, and retirees from forfeiting their benefits. But Biden's intervention comes after he rankled the key Democratic constituency by urging Congress to enforce a tentative union dispute agreement between railroad companies and their employees in order to avoid a strike that would have crippled the economy before the holidays.
Biden’s Abuse of Power Causes CBO to Raise Cost Estimate of Private Pension Bailouts by $4.5 Billion
October 18, 2022 // The Congressional Budget Office released a report on Sept. 30 that says President Joe Biden’s changes to the rules of a recent taxpayer bailout of select private union pension plans will add $4.5 billion in costs, bringing the taxpayers’ tab to $90.4 billion over the 2022-2032 period. And that’s likely just the tip of the iceberg. Ordinarily, $4.5 billion in additional spending as a result of administrative action would elicit scrutiny and challenges. After all, Congress—not the administration—has the powers of the purse, and the Biden administration’s Pension Benefit Guaranty Corporation has directly altered the law passed by Congress.
Punching In: High Court Signals Coming Curbs on Agency Deference
August 2, 2022 // The Supreme Court earlier this summer affirmed that agencies can’t regulate “major questions” with significant economic or political implications unless Congress explicitly gives them the power to do so, Given the court’s recently expanded view of what presents a “major question,” some attorneys say the conservative-majority court may next take a swipe at Chevron deference all together. And with the Biden administration’s ambitious regulatory agenda, the DOL’s moves to define an approach to independent contractor status, alter how prevailing wages are calculated, expand overtime pay protections, or issue most any other regulation could be more vulnerable to litigation if that happens. A revised version of President Joe Biden’s $94 billion bailout for union-backed pension plans will take effect next week, outlining a realistic path for hundreds of cash-strapped plans to pay benefits for the next 30 years. Michael Lotito, co-chair of Littler Mendelson PC’s Workplace Policy Institute,
Congress’ Vote on Delphi Pensions Bailout Shows Problem With Putting Unions Above Law
July 28, 2022 // Congress is set to vote this week on HR 6929 to retroactively bail out the pensions of about 20,000 former Delphi auto-parts employees who had their pensions reduced beginning in 2009. This proposed bailout, the Susan Muffley Act of 2022, is different in a number of ways from the recent no-strings-attached $97 billion bailout of about 250 select union pension plans, but it highlights the problem of lawmakers putting powerful unions above the law and requiring taxpayers to pay for their wrongdoing. Delphi Salaried Retirees Association, Bruce Gump, James Sherk, Todd Zywicki, Auto Bailout or UAW Bailout? Taxpayer Losses Came From Subsidizing Union Compensation,
Opinion: Biden’s pension ‘guarantee’ stretches the law to bail out unions
July 15, 2022 // “PBGC has, after this further review of the statute, additional consultation with its Board agencies [Treasury, DOL, and, Commerce], consideration of comments, and extensive actuarial modeling, determined that an alternative interpretation… is reasonable and more likely to result in the [taxpayer funds] an eligible plan receives being sufficient for the plan to pay full benefits through 2051.” There is no limiting principle on the spending of taxpayer money if agencies can disregard the law with the hope no one has the standing to obtain judicial review. PBGC’s rationale that the American Rescue Plan’s goal to keep plans going through 2051 justifies overriding the statute to change the interest rate would also justify illegally pumping additional billions into plans if they run out of money before 2051, which is exactly what President Biden “guaranteed” on Wednesday. The bailout will cover only a small fraction of the $757 billion of underfunding in the plans. More than 95 percent of the system’s 11 million participants are in plans less than 60 percent funded. Why not also ignore the law’s eligibility criteria and bailout other plans? Chevron v Natural Resources Defense Council, Majority Leader Charles Schumer
Biden spotlights effort to rescue union pensions
July 7, 2022 // Reassuring frustrated blue-collar voters, President Joe Biden on Wednesday visited Ohio iron workers to highlight federal action to shore up troubled pension funding for millions now on the job or retired — and to make his political case that he’s been a champion for workers in the White House. Bill DeVito, Jeffrey Carlson, Rob Portman, Democratic Rep. Tim Ryan, Republican J.D. Vance,