Virginia Foxx: “Democrats keep forcing taxpayers to bail out failing and mismanaged union-run multiemployer pension plans, and it needs…”

“Democrats keep forcing taxpayers to bail out failing and mismanaged union-run multiemployer pension plans, and it needs to stop. The Committee on Education and Labor has dedicated considerable time and held countless hearings on the problems posed by multiemployer pension plans and the Pension Benefit Guaranty Corporation's, PBGC's, multiemployer insurance program. Unfortunately, unlike previous bipartisan legislation to address the failing system, our Democrat colleagues decided to go it alone by enacting the deceitful American Rescue Plan Act, ARPA. Under the guise of COVID relief, ARPA included an irresponsible and uncapped taxpayer bailout of failing and insolvent multiemployer pension plans. Let me repeat, there is no cap on the amount of taxpayer dollars that PBGC may send to multiemployer plans. This is especially concerning given that multiemployer plans are currently underfunded by $756 billion. Unsurprisingly, the cost of ARPA's pension bailout program continues to grow. The Congressional Budget Office originally estimated it would cost taxpayers $86 billion. Five months later, PBGC estimated it would likely distribute $94.2 billion. After 2 more months, PBGC estimated it would likely distribute $97.2 billion and, in one scenario, could distribute upward of $147 billion. To date, PBGC has disbursed $6.7 billion to 26 plans, and this is just the beginning.…”