[Congressional Record (Bound Edition), Volume 161 (2015), Part 7]
[Extensions of Remarks]
[Page 10010]
[From the U.S. Government Publishing Office, www.gpo.gov]




         INTRODUCTION OF THE ``KEEP OUR PENSION PROMISES ACT''

                                 ______
                                 

                           HON. MARCY KAPTUR

                                of ohio

                    in the house of representatives

                         Friday, June 19, 2015

  Ms. KAPTUR. Mr. Speaker, I rise today to introduce the ``Keep Our 
Pension Promises Act.''
  Pensions are one of the surest means to afford millions of middle 
class families an opportunity for security in retirement, to enjoy 
their golden years without being afraid that they haven't saved enough 
money or what they have saved could run out. Pensions guarantee our 
senior citizens will know they have a check arriving every month for as 
long as they live. This is true retirement security.
  For forty years the federal pension law has ensured that retirees are 
given the highest level of protection. For forty years, the Employee 
Retirement Income Security Act, or ERISA, controlled that pension 
benefits in multiemployer plans should be cut only when a plan runs out 
of money--and even then, the benefits of retirees should be the last to 
be cut. This has held tried and true because it was the right thing to 
do. Retirees worked their entire life to earn the promise and benefit 
of a guaranteed pension.
  This was all uprooted by Congress' December vote on the Omnibus 
funding bill. A provision that was stuck into the 1,600 page Omnibus 
bill, at the last minute, forced a decision between shutting down the 
government and cutting retiree's pension benefits for the first time 
ever.
  An estimated 1 million participants, including retirees, are in 
multi-employer pension plans that federal officials say are in danger 
of running out of money in the near future. The provision Congress 
passed allowed for the first time for the benefits of current retirees 
to be cut as part of a deal to address the fiscal distress confronting 
some of the nation's multi-employer pension plans, having a direct 
impact on 1.5 million American retirees.
  This was wrong and today I introduce the ``Keep Our Pension Promises 
Act'' with Senator Bernie Sanders of Vermont, to correct this short 
sighted effort.
  This Act corrects the injustices bestowed upon our most vulnerable 
retirees by restoring anti-cutback rules so that retirees in 
financially troubled multi-employer pension plans are protected from 
having their earned benefits cut.
  It will allow plans to partition off ``orphaned'' participants into a 
separate plan, giving participating employers relief from having to 
shoulder the full financial burden and risk of underfunded ``orphaned'' 
participants--ensuring the ability for plans to become financially 
secure once more.
  Recognizing that funding is the ultimate concern, the act shores up 
the Pension Benefit Guaranty Corp and creates a legacy fund to ensure 
participants in partitioned plans will continue to receive the benefits 
they depend upon. The costs to create this fund are covered by closing 
tax loopholes the very wealthy use to accumulate expensive artwork and 
avoid estate and gift taxes.
  Further the bill ensures pension obligations are prioritized during 
bankruptcies, which will help the remaining employers in the plan by 
making it less likely they become responsible for underfunded orphan 
plans.
  Our pension system has allowed our senior citizens the opportunity to 
enjoy their years of hard work in retirement and receive the payouts 
they spent a life time to earn. This effort recognizes that shared 
sacrifices are the appropriate course of action to address weakness in 
pension plans. I encourage my colleagues to support this measure and 
correct the misguided action passed in last year's Omnibus funding 
bill.

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