Peters Calls for Senate to Pass Legislation to Stand by Michigan Workers, Bolster Multiemployer Pension Program
New Report Shows Rapid Expansion of Multiemployer Pension Program’s Deficit by 2030
WASHINGTON, D.C. – U.S. Senator Gary Peters (MI) called on the Senate to support Michigan workers by bolstering the multiemployer pension program. Peters highlighted that the newly released Pension Benefit Guaranty Corporation (PBGC) report projects that the deficit from the PBGC’s multiemployer pension insurance program is expected to expand approximately $17.1 billion by 2030. The report underscores the immediate need for Congress to pass legislation that provide financial security for all workers and retirees within the multiemployer pension system.
“Michiganders worked their entire lives and played by the rules – when they retire, they deserve the benefits that they were promised and have earned over their lifetime,” said Senator Peters. “Especially during these challenging times, the Senate must act immediately to shore up our pension system and stand by the workers in Michigan and across this country who built our nation. Taking action will not only honor the sacred promise made to workers, but will also save taxpayer dollars in the long-run.”
Approximately 10% to 15% of defined benefit plan participants are in plans that are projected to become insolvent within the next 20 years. One of these troubled pension plans is the Central States Pension Fund. Over 400,000 Americans, including over 47,000 Michiganders, will face massive cuts to their pensions if Central States plans are allowed to fail.
Peters has led numerous efforts to help protect Michiganders’ hard-earned pensions. Earlier this Congress, Peters championed the Butch Lewis Act, legislation that would immediately address pension insolvency without sacrificing workers’ benefits. Peters also previously cosponsored the Keep Our Pensions Promises Act, legislation that would prohibit cuts to benefits earned by pension plan participants and provide critical funds to help plans reach long-term fiscal solvency. Finally, Peters cosponsored the Protecting the Right to Organize Act last year to ensure that workers can continue to collective bargain for better pensions, better working conditions and stronger collective bargaining rights.
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