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)
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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.