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House Passes H.R. 4213

Critical pension relief language Legislation moves to senate

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UPDATE, 28 MAY: At approximately 11:00 AM PDT, the House brought H.R. 4213, The American Jobs and Tax Loopholes Act to the floor. The House approved the bill by a vote of 215 to 204, with 13 Representatives not voting, and the legislation now moves to the Senate for consideration.

This legislation provides important, but modest adjustments to funding requirements so plan sponsors will not have to choose between making forced cash contributions, freezing plans or cutting jobs. H.R. 4213 makes simple adjustments to the amount of time a plan can make up losses over time and relief on funding-level restrictions, among other provisions. Funding relief provisions will save taxpayers $2 billion.

A broad coalition of pension plans has worked for months to encourage legislators to enact this legislation, in order to provide the most favorable language possible for these plans.

With the House and Senate in recess until June 7, chcek back for updates regarding this important legislation. There will be additional opportunities to call, fax and e-mail your Senators and demand the passage of this bill.

Talking Points: HR 4213

It provides limited, targeted relief to help all pension plans – corporate and multiemployer plans - weather the massive losses suffered in 2008's economic crisis.
It is not a “bailout”- on the contrary, it provides more time to plan sponsors to meet funding obligations.
More than 90% of contributing employers to multi-employer plans are small businesses who provide well paying, middle class jobs with pension and health benefits – the kind of jobs that must be preserved if our economy is to recover.
Before the 2008 recession, multi-employer plans were, on average more than 90% funded.
Relief measures included reduce the risk to all stakeholders – by enabling employers to remain competitive and generate hours of contributions that fund the plans.
In the absence of this relief, Boards of Trustees’ must adopt funding improvement and rehabilitation plans that are being incorporated into collective bargaining agreements being negotiated every day.
These plans must meet funding targets that include unnecessarily high contribution rates and deeper than necessary benefit cuts that cannot be restored under current law - all of which could be avoided with this relief.

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