Rep. McEachin Votes in Support of Protecting Pensions for Retirees

WASHINGTON, July 24 -- Rep. A. Donald McEachin, D-Virginia, issued the following news release:

Today, Congressman A. Donald McEachin (VA-04) voted for House passage of the Rehabilitation for Multiemployer Pensions Act, also known as the Butch Lewis Act. The Congressman co-sponsored this important bipartisan legislation, which will ensure multiemployer pension plans remain solvent and continue providing retirees and workers with the retirement benefits they have earned.

"Today the House sent a clear message to American workers and retirees: we are committed to addressing our multiemployer pension crisis and protecting your hard-earned benefits," said Congressman A. Donald McEachin. "Our workers deserve the pensions they earned, and to retire in dignity. Workers, retirees, and families across the country are depending on Congress to act, and I look forward to this bill becoming law."

Under the proposal, private investors would be able to purchase highly attractive, long-term Treasury Bonds backed by the full faith and credit of the United States. A new office within the U.S. Treasury Department, the Pension Rehabilitation Administration (PRA) would administer loans to troubled pension plans using the money from the sale of the long-term bonds. To ensure that the pension plans can afford to repay the loans, the PRA would lend them money for 30 years at low interest rates. The 30-year loans would buy time for the pension plans so they can focus on investing for the long-term health of the plan, while the loans pay benefits owed to current retirees. These loans will allow multiemployer pension plans to remain solvent, grow their assets, and pay promised benefits. The loan proceeds must be invested in low-risk investments, like an annuity or a fixed income investment. Additional assistance is also available to those plans that need it.