It says: “Under MPRA, the PBGC must propose funding by June 1 to Congress that would permit it to preserve multiemployer plans.” The 2017 budget proposes to solve the problem by raising $15 billion in higher premiums for multiemployer plans and by giving PBGC the power to set rates without congressional approval. As an editor on Teamsters Pension crisis page and I have the FL Tampa page I comment on a number of articles, but I wanted to bring this to your attention. It would be a mistake giving the PBGC the power to set rates. This article doesn’t say over what time period the $15 billion would have to be raised, but according to the MPRA, the PBGC is to have 10 and 20 year projections, but in their FY 2015 report they said they would be solvent through 2025 and thus had no 20 year projection. KOPPA is said to raise $18 billion over the next 10 years through closing 2 top end tax loopholes (“like kind” exchanges over $1 million). A $200 increase in premiums would generate $20 billion over that same period. Although the PBGC needs funding it would be a mistake giving the PBGC the power to set rates without congressional approval.
Josh Gotbaum, mentioned in Richards comment as a regular at NCCMP events, also had a stake in passing the MPRA to cut the retirees to save the PBGC that he previously headed to cover the mismanagement of his tracks. He also testified at the Senate Finance Committee hearing on March 1st, 2016. It’s just a shame that someone with his education and degrees could sell their soul to the NCCMP. The single PBGC fund pays out 55 times more in claims than the Multi fund. The single fund has 47 times the assets, but at the Senate hearing it was stated the average single premium which includes VPR’s too, but insurance up to $60K for single fund participants was $140 and the Multi premium was $26 for the max guarantee of $12,870 per year. Three times the participants and six times the rates and somehow not twenty times the assets, but forty-seven times. The PBGC needs oversight and investigation. In the PBGC FY 2015 Report, they continue to be reported, (passed 7 years on record) of having significant deficiency in lack of controls over premium process, manual processes, and monitoring controls over non-commingled assets by the independent auditor CliftonLarsonAllen. It would seem that multi fund premiums were going to the greatest need.< Back