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About Northwest labor press. (Portland , Ore.) 1987-current | View Entire Issue (July 16, 2021)
PAGE 2 | July 16, 2021 | NORTHWEST LABOR PRESS NORTHWEST LABOR PRESS Up to 200 union pensions can get federal assistance From Page 1 (International Standard Serial Number 0894-444X) Established in 1900 in Portland, Oregon as a voice of the labor movement. Published on a semi-monthly basis on the first and third Fridays of each month by the Oregon Labor Press Publishing Co. Inc., a non-profit mutual ben- efit corporation owned by 20 unions and councils includ- ing the Oregon AFL-CIO. Serving more than 120 union or- ganizations in Oregon and Southwest Washington. Office location: 4275 NE Halsey St., Portland, Oregon Mailing address: P.O. Box 13150, Portland, OR 97213 Phone: (503) 288-3311 Web address: https://nwlaborpress.org Editor & Manager: Michael Gutwig Senior staff reporter: Don McIntosh Office manager: Jill Lukens Printed on recycled paper, using soy-based inks, by members of Teamsters Local 747-M. SUBSCRIPTIONS: Individual subscriptions are $15 a year for union members, $23 a year for all others. Pay by credit card online at nwlaborpress.org/subscribe, or send a check to our mailing address (above) along with your name, address and union affilia- tion, if any. Group rates of 48 cents an issue per member — $11.52 a year are available for 25 or more subscriptions; call 503-288-3311 for details. CORRECTIONS: See an error? Please let us know at editor@nwlaborpress.org or by phone at 503-288-3311. PERIODICALS POSTAGE PAID AT PORTLAND, OREGON. CHANGE OF ADDRESS: If you move, let us know at nwlaborpress.org/subscriber-ser- vices or by mail at our mailing address (above). Be sure to provide your old and new addresses and the name/number of your local union. Please allow three weeks for the change to take effect. POSTMASTER: Send address changes to NORTHWEST LABOR PRESS P.O. BOX 13150 PORTLAND, OR 97213-0150 CORRECTION A feature in our July 2 issue about re- tiring union leader Belinda Reagan got a few details wrong. It was Rea- gan’s friend Cathie Holmes, a special- ed teacher, who suggested that Rea- gan apply to be a library assistant at Portland Public Schools. And later it was her friend Becky Wright, a para- educator, who encouraged Reagan to get involved in their union, Port- land Federation of School Profession- als, AFT Local 111. Our story erro- neously combined the two friends. Also, Reagan graduated high school in 1969, not 1967. The Labor Press regrets those mistakes, and wishes her a wonderful retirement. Hours: Mon-Sat 12-6 pm Closed Sunday by 2026. As laid out in the newly an- nounced program rules, the plans with the most immediate need will be the first to receive rescue funds. Applications are now open for 25 pension plans that are already insolvent or that were projected to become insolvent by next March. Next in line will be 18 pension plans that were given permission to cut their pension benefits un- der the 2014 Multiemployer Pen- sion Reform Act (MPRA). Those include two pensions for workers in the Portland area— Plasterers Local #82 Pension Plan, and Western States Office & Professional Employees Pen- sion Fund. Those plans will be allowed to apply for assistance starting Jan. 1, 2022, or sooner if PBGC processes the first group quickly enough. Importantly, those pension plans can restore full benefits immediately for cur- rent retirees, and don’t have to wait until the rescue funds arrive. Once the aid arrives, they’ll also be able to pay back retirees for any benefits they lost thanks to the cuts. “All of us trustees are ecstatic about it,” said Kent Sickles, busi- Importantly, those pen- sion plans can restore full benefits immediately for current retirees, and don’t have to wait until the rescue funds arrive. Once the aid arrives, they’ll also be able to pay back retirees for any ben- efits they lost as a result of the cuts. “This is a historic achievement to secure the pension benefits of hardworking union members, and the most substantial policy ever passed to further the solvency of our nation's multiemployer pension plans,” said U.S. Labor Secre- tary Marty Walsh in a July 9 press statement about newly issued rules imple- menting a government rescue of failing pension funds. Walsh, pictured above at a June 24 event in Indianapolis, is a former leader of Laborers Local 223 and the Boston Building Trades Council. ness manager of Plasterers Local 82. After those two groups, PBGC will give priority to the giant Central States Teamsters Pension and to the 25 multiem- ployer pensions that are pro- jected to become insolvent in the next five years. The final group will be all other multi-employer pension plans that are forecast to run out of money by 2051. Once plans apply for the aid, PBGC will process their applica- tion within 120 days, and issue payment within 60 days after that. The rescues will come in the form of a single lump sum pay- ment. The payment amount will be calculated to be enough that, together with the plans’ existing assets, they’ll be able to pay all pension benefits that are due through 2051. There’s no re- quirement that the plans repay the aid. Pension plans will have to keep the government rescue funds separate from their other assets, and can only place them in low-risk investment-grade bonds. The money does come with some conditions. Pension plans that get the assistance won’t be allowed to retroactively increase previously earned pension bene- fits, and they can only increase future benefits if those are funded with new contributions. One group that won’t get re- lief under the rules is contribut- ing employers. When they got into trouble, many underfunded plans imposed significant sur- charges on participating employ- ers that were intended to make up for the investment losses. PBGC’s rescue plan rules say that employers can’t reduce the amount of contributions they’re currently making under their col- lective bargaining agreements.
