Senate Resolution No. 392

BY: Senator BRESLIN

MEMORIALIZING Congress to investigate and develop
legislation to ensure solvency of multiemployer
pension plans

WHEREAS, Multiemployer pension plans were established in industries
where workers often worked for more than one company over the course of
their career and thus provide retirement security; and

WHEREAS, There is a national multiemployer pension plan crisis; it
is estimated there are 10 million Americans who depend on a
multiemployer plan for their retirement income; and

WHEREAS, Unfortunately over one million Americans are in plans that
are expected to run out of money over the next 20 years, including the
New York State Teamsters Plan; to make matters worse, the federal agency
that ensures a minimum retirement, the Pension Benefit Guaranty
Corporation (PBGC), is also running out of money; and

WHEREAS, If no action is taken to fix the PBGC's funding, the agency
is likely to run out of money to pay a minimum pension benefit in less
than 10 years and more likely sooner; and, if a plan such as the NYS
Teamster Fund cannot meet its obligations, the PBGC will not be able to
provide that minimum pension guarantee; and

WHEREAS, In 2015, Congress attempted to address this problem by
giving trustees of multiemployer plans only one tool which is the
ability to reduce the pension benefit that had been promised to future
retirees and that current retirees are receiving, but in doing so also
required that agencies of the federal government must approve that
reduction; and

WHEREAS, In that time, a number of applications have been sent by
various funds but only one plan proposal has been approved and the
result will be an acceleration of plan insolvencies that will quickly
drain the resources of the PBGC; and

WHEREAS, As one leader of the Mobilization Plan stated, "does it
really matter if the benefit cut is 10% or 90%; if there's no money,
they both result in nothing."; now, therefore, be it

RESOLVED, That the Congress of the United States be and hereby is
respectfully memorialized by this Legislative Body to investigate and
develop legislation to ensure solvency of multiemployer pension plans;
and be it further

RESOLVED, That copies of this Resolution, suitably engrossed, be
transmitted to the President of the Senate of the United States, the
Speaker of the House of Representatives, and to each member of the
Congress of the United States from the State of New York.