Friday, May 28, 2010

Latourette: Disappointment--Co-sponsors union bailout

U.S. Rep Steve Latourette has become an bigger disappointment.  Rep. Latourette is co-sponsoring a bill to "bail out" pension funds for unions--read "bail out" unions.

See the summary of H.R. 3936 here.

Preserve Benefits and Jobs Act of 2009 - Amends the Employee Retirement Income Security Act of 1974 (ERISA) and the Internal Revenue Code to: (1) allow a sponsor of a single-employer defined benefit pension plan to elect in 2009 or 2010 extended amortization periods (9 or 15 years) for investment losses incurred in prior years; (2) allow an increase in the valuation range of plan assets; (3) use the funded status of a plan in 2008 to determine benefit restrictions in 2009 and 2010 and prohibit the use of credit balances by pension plans that are under 80% funded in the prior year; (4) exclude plan-related administrative expenses (including investment expenses) from normal cost targets; (5) delay until 2012 the application of certain benefit restrictions to collectively bargained plans; and (6) require a 120% funding target for plans adopting ad hoc amendments that allow lump sum benefits payments and increased plan liabilities. Revises rules relating to information reporting and reportable events. Calculates the amount of any pension plan guarantee by the Pension Benefit Guaranty Corporation (PBGC) using the date of plan termination rather than the date of a plan bankruptcy filing. Amends ERISA provisions relating to multiemployer pension plans to: (1) allow such plans to elect alternative amortization plans and valuation methods in 2009 and 2010 for investment losses; (2) extend by five years the funding improvement period for plans in endangered or critical status; (3) permit multiemployer plans to merge or form alliances with other plans; and (4) increase PBGC guarantees for insolvent plans to increase participant benefits.

Although not specifically mentioned, unions, make no mistake H.R. 3696 is aimed at saving union pension funds.

The Employee Retirment Income Security Act of 1974 (ERISA) is explained here.  Again, no specific mention of unions for full disclosure.

Watch Rep. Latourette cry and moan about being criticized.

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