The proposed bill, known as the Rehabilitation for Multiemployer Pensions Act, was introduced in January and aims to provide relief in the form of low cost, government backed loans to certain multiemployer pension plans. Today, nearly 1.5 million participants are covered by pension plans that are quickly running out of money and could be facing insolvency. The proposed legislation takes a slightly different approach to aiding these plans by creating a new agency within the Department of Treasury, which would issue new, government backed loans to close the funding gap of these plans. Ultimately, the law would require that these loans be paid back by the plans once they regain strength and remove the threat of insolvency. The new agency, called the Pension Rehabilitation Administration, would be headed by a director, who would be appointed by the President.
This proposal is one of the ideas being currently discussed by a separate Joint Select Committee on the Solvency of Multiemployer Pension Plans. That Committee has not yet issued its recommendations but continues to work on a package of solutions and believes that a bipartisan solution is attainable given its progress so far.