5.23.19 – Protecting PBGC Pension Holders

Thursday, May 23, 2019

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Protecting PBGC Pension Holders

Several pieces of legislation were recently introduced to address two issues that affect Pension Benefit Guarantee Corporation (PBGC) pension holders. The PBGC is a government agency that protects the retirement security of 37 million Americans in private-sector pension plans by ensuring that employees receive a pension when a company files for bankruptcy and is, therefore, able to void out their pension obligation. Though this agency serves as a necessary safety net, the PBGC is, in some cases, only able to fulfill a portion of a promised pension when a company fails to meet its commitment. These employees are then left to account for the difference between the pension they were promised and the pension they actually receive through the PBGC.

1. APFA supports the Health Coverage Tax Credit (HCTC) Reauthorization Act which helps keep healthcare costs manageable for PBGC pension holders once they retire. The HCTC is set to expire at the end of 2019, so it needs to be renewed by Congress this year. The credit helps lower healthcare costs for retirees between ages 55-65 by bridging the gap to Medicare eligibility. This affects retired and soon-to-retire APFA members with a PBGC pension who have already suffered through pension loss during airline bankruptcies. Basic healthcare costs should never be an impediment to retirement and PBGC holders should not have to lose any more benefits.

 

Call your Senators and Representatives today!
Support bill H.R. 1939 introduced by Rep. Turner (OH-10)
Ask your Senators to introduce a companion bill in the Senate
202-224-3121

2. APFA stands with the mine workers represented by UMWA who are fighting for their pensions. If Congress does not pass legislation to fund their pensions, they are at risk of being turned over to the PBGC, where their pensions may end up dramatically reduced. Some APFA members have suffered through our own pension reductions when airline pensions were turned over to the PBGC. We know firsthand how disrespectful this is to employees to see hard-earned pensions replaced and cut. However, this legislation also impacts more than only mine workers. This affects all PBGC holders. Should the mine workers’ pensions be rolled into the PBGC, it could destabilize the PBGC for anyone who currently holds a PBGC pension.

Call your Senators and Representatives today!
Support bills H.R. 934 & 935 in the House and S. 27 in the Senate
202-224-3121

Allie Malis

APFA National Government Affairs Representative
legislation@apfa.org

Kim Tuck

APFA Retirement Specialist
retirement@apfa.org 

1004 West Euless Boulevard
Euless, Texas 76040

Phone: (817) 540-0108
Fax: (817) 540-2077

 

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