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Sen. Robert Casey (D-Penn.), wants Americans to bail out union pension plans underfunded by hundreds of billions of dollars. Casey's bill, the Create Jobs and Save Benefits Act of 2010, is similar to that of Reps. Earl Pomeroy (D-N.D.), and Patrick Tiberi (R-Ohio), who seek to bail out pension plans with their proposed Preserve Benefits and Jobs Act of 2009, introduced last fall.
Under these bills, the Pension Benefit Guaranty Corporation (PBGC) would, at the request of the plans, have the authority to take over the pension obligations of employers who have withdrawn from the plans, and pay the benefits out of taxpayer dollars.
By bailing out the plans, Congress would compromise the remedial provisions of the Pension Protection Act of 2006. The Act requires underfunded pension plans to put their houses in order by raising retirement ages; increasing contributions by employers, workers, or both; and lowering benefits. A bailout would remove any incentive for multiemployer pension plans to reorganize their plans responsibly.
The driving force? Unions, who want to be free of pension obligations so that they can focus on higher wages in future contracts...
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