[Congressional Record Volume 156, Number 114 (Friday, July 30, 2010)]
[Extensions of Remarks]
[Page E1522]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                     INTER-LOCAL PENSION FUND BILL

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                          HON. RICHARD E. NEAL

                            of massachusetts

                    in the house of representatives

                         Friday, July 30, 2010

  Mr. NEAL. Madam Speaker, I rise today to introduce legislation to 
improve the retirement savings of hard-working union members. 
Specifically, members of the Inter-Local Pension Fund of the Graphic 
Communications Conference of the International Brotherhood of Teamsters 
do not have access to some of the same retirement provisions that other 
workers do. And I think it simply makes no sense.
  The Fund, formed in 1950, is a 501(c)(18) pension trust that provides 
benefits to 12,500 active and 20,000 retired union members. Sixty-eight 
local affiliated unions participate in the Fund, and benefits are 
financed entirely by employee contributions and the earnings thereon. 
Section 501(c)(18) provides a tax exemption for a pension trust created 
before June 25, 1959 and funded solely by employee contributions. 
Further, the pension plan of which the trust is part must satisfy 
certain nondiscrimination tests. The Fund appears to be the sole 
remaining section 501(c)(18) pension trust in existence.
  Madam Speaker, my legislation would simply apply the same cap to 
annual contributions to 501(c)(18) pension trusts that applies to 
annual elective deferrals in 401(k) plans. Those caps for workers in 
401(k) plans are also adjusted for inflation. Without such parity the 
Fund's pension value will continue to decline. These workers deserve to 
be on equal ground as 401(k) participants.
  Additionally, the legislation makes available to the Fund the same 
exception from the debt-financed real property rules currently 
available to section 401 pension trusts allowing for better 
diversification of assets.
  In closing, Madam Speaker, these provisions will allow the Fund to 
better serve its union members and do so in sync with its tax exempt 
purpose of providing self-funded employee benefits. I urge my 
colleagues to join me in supporting this legislation.

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