In March 2021, President Biden signed the American Rescue Plan Act of 2021 (H.R. 1319) into law, including a controversial provision providing a Congressional Budget Office-estimated $86 billion taxpayer bailout of struggling union multiemployer pension plans. The structural flaws of MEPPs and potential for costly MEPP withdrawal liability and plan insolvency have been recognized for decades. Small businesses work hard to provide good benefits for their employees and call the concession to these plans a costly bailout that is expected to cost taxpayers as much $400 billion in the long run without significant reforms. A final rule outlining the distribution of bailout money is live (RIN No. 1212-AB53) and dozens of construction industry multiemployer pensions plans have been granted relief by the Pension Benefit Guaranty Corporation’s Special Financial Assistance Program.
ABC will continue to monitor all legislative proposals concerning the Pension Benefit Guaranty Corp. and MEPPs and oppose government-mandated PLAs and other laws mandating contractor and employee participation in MEPPs, which can result in lost wages and benefits by for nonunion employees as much as 34%. Visit freeenterprisealliance.org/foca to learn more and take action.