Congressman Neal Introduces Rehabilitation for Multiemployer Pensions Act
On Wednesday, January 9, House Ways & Means Committee Chairman Richard Neal (D-MA) introduced the
Rehabilitation for Multiemployer Pensions Act. This bill presents the same solution to the national multiemployer
pension crisis that was contained within the Butch Lewis Act in its original form. It would provide low-interest
government loans to multiemployer pension funds in “critical and declining” status. These loans would provide enough
money for a multiemployer fund to pay current retirees and beneficiaries their benefits for life, which would allow the
fund to grow back to stronger financial footing.
If the AFM-EPF enters “critical and declining” status in the future, this legislation—in its current form—would provide the
Fund with the financial support required to avoid insolvency.
The AFM-EPF has been in “critical” status for every fiscal year since 2010. After the Fund’s fiscal year ends on March 31,
2019, our actuaries will conduct their annual analysis to determine if the Fund remains in “critical” status or enters
“critical and declining” status. Under the Multiemployer Pension Reform Act, the Trustees can only file an application to
reduce benefits with the U.S. Treasury Department once the Fund enters “critical and declining” status.
The Trustees maintain their support for this legislation and will continue to advocate with Members of Congress to pass a
solution that protects the AFM-EPF and your pension benefits. The Joint Select Committee on the Solvency of
Multiemployer Pension Plans has not been reconstituted in the new Congress that took office this year, but Congressional
leaders have committed to picking up where the Committee left off, continuing their work to craft a solution that can pass
both houses of Congress and be signed by the President into law.
Click here to read Rep. Neal’s announcement, here to read a summary of the bill and here to view full text of the bill.
We will continue to keep participants updated as the new Congress tackles this pressing crisis afflicting the AFM-EPF and
more than 120 multiemployer pension funds across the country.