If passed, this bill could be the tip of a multi-trillion dollar taxpayer bailout. President Trump, whose sympathy for the miners is well known, should beware, along with Congress.
That’s because the UMWA is not the only pension plan that has made promises to its workers and failed to set aside the funds to keep those promises. Out of nearly 1,400 union-run or “multiemployer” pension plans across the U.S., 85 percent of them are less than 70 percent funded, and they have promised $500 billion more than they can pay.
The second proposed “funding” mechanism is a taxpayer loan to the insolvent pension plan—which is no different than a straight-up bailout. When there’s virtually no chance of repayment, that’s not a “secure loan.”