The House will meet on Friday to vote on the next much needed stimulus bill, the Health and Economic Recovery Omnibus Emergency Solutions (HEROES) Act.
This new legislation includes pieces we were fighting for, like a temporary OSHA emergency standard and help paying for COBRA coverage for those out of work. Under normal circumstances, we would be thrilled about this outcome and urge quick passage, but a poison pill has been slipped into the bill that we cannot support and must be removed – a composite pension plan called the GROW Act.
We Must Protect Our Pensions
For years, the USW has been fighting to secure the viability of multiemployer pensions. We fought hard to see the Butch Lewis Act pass through House last July, and have been disappointed that the Senate has yet to address it. We also know the economic crisis caused by the pandemic has only amplified the need to stabilize these pensions, and needs to be addressed. Unfortunately, the GROW Act is not the solution.
Why the GROW Act Won’t Work
This proposal would allow well-funded multiemployer plans to adopt a “hybrid” pension plan, which cuts out employer withdrawal liability, eliminates the safety net of the Pension Benefit Guaranty Corporation (PBGC), and makes benefits unpredictable. Given that these plans will no longer have to contribute to the PBGC, it puts the system further in jeopardy. A composite plan does not contain any provisions to assist multiemployer plans in critical or critical and declining status.
We Need Quick Action!
The GROW Act is the wrong solution for fixing our multiemployer pension problems. It hurts workers, retirees, employers, and the Pension Benefit Guaranty Corporation (PBGC). It should not become law.
Tell your Representaive to remove the GROW Act before voting on the HEROES Act.
Our union has seen significant impacts in our industries and we know the HEROES Act is the right direction, but we can’t include provisions that would amplify the current multiemployer pension crisis. Please take action today!
