A bipartisan group of lawmakers is hoping to head off a looming union pension crisis by expanding options for retirement benefits.
On Tuesday evening, Reps. Phil Roe (R., Tenn.) and Donald Norcross (D., N.J.) introduced the Give Retirement Options to Workers (GROW) Act, which would allow multi-employer pensions to transition from traditional defined benefit plans—in which fixed payments are delivered to retirees—to a hybrid that combines existing plans with 401(k)-style defined contribution plans, in which workers and employers contribute money to investment accounts. Roe said the reform is needed to preserve pension systems for future generations of workers.
"In a time of financial uncertainty, it is crucial that we give workers more flexible and sustainable options for creating stable retirement security," he said in a statement. "The GROW Act offers a fiscally responsible way forward, and this structure will enable pensions to maintain fiscal solvency in the future."
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1 comment:
Trying to cover up the crimes committed by these pensions. Vastly under-funded. They made unreasonable promises and then refused to fund the pensions.
Be skeptical of these plans to “protect workers”. The politicians don’t give a hoot about regular hard working people.
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