Sens. Heitkamp, Smith Provide Update to Over 80 Workers & Retirees on New Congressional Pension Committee & Efforts to Solve Pension Crisis

FARGO, North Dakota, May 12 -- The office of Sen. Heidi Heitkamp, D-North Dakota, issued the following news release:

U.S. Senators Heidi Heitkamp (D-ND) and Tina Smith (D-MN) today joined more than 80 workers and retirees in Fargo to provide an update following the second meeting of the new 16-person House and Senate Joint Select Committee tasked with solving the crisis facing multiemployer pension plans across the country.

Without action from Congress, 2,000 North Dakotans, 22,000 Minnesotans, and 400,000 pension fund participants across the country who paid into Central States Pension Fund, as well as a total of 1.5 million retirees nationwide who are part of various pension funds, will see their pensions drastically cut.

Heitkamp and Smith encouraged those impacted by the multiemployer pension crisis to send their feedback to a new inbox created by the committee, which is gathering input about current challenges related to the crisis as the Committee works to craft a legislative solution to the pension problem by the end of the year. Workers, retirees, and businesses can send their suggestions and ideas via email to JSCSMPP@finance.senate.gov until September 30, 2018.

"Across North Dakota and the United States, hundreds of thousands of workers and retirees worked hard to provide for their families long into the future and did everything right. But now, through no fault of their own, they could face a financial disaster," said Heitkamp. "If we don't address the issues facing our multiemployer pensions, these North Dakotans could see their retirement security disappear, small businesses across the state could plunge into bankruptcy, and taxpayers could be left on the hook to deal with the mess. That's why I'm proud to serve on the new pension committee with Senator Smith, and now we're fighting to make sure the stories of workers and retirees impacted by the crisis are heard. We want to bring back these stories, so that the committee can work to avoid this devastation and pursue bipartisan reforms that will uphold our commitment to America's working men and women."

"There are more than 22,000 Minnesotans--and thousands more in North Dakota--who sacrificed and worked long hours for many years, and were promised that when they were done working, the pension funds that they paid into would be there for them in their retirement," said Smith, a member of the Senate Health, Education, Labor and Pensions Committee. "Senator Heitkamp and I are committed to helping ensure that we not only get pensioners the secure retirement they've earned, but also that we shore up pension systems across the country that millions of working Americans rely upon in retirement. The stories we heard today from the workers and retirees in our states will help us in this fight."

All submissions to the Committee's feedback inbox will be considered part of the public record; should be clear and concise; directed at the issues that the Joint Select Committee is charged to consider; and provided in the form of an email attachment (either in Microsoft Word or text-searchable PDF file). The email containing the attachment should clearly indicate the name(s) of the author(s), contact information and any professional affiliation.

Many retirement plans are now facing insolvency after years of deregulation in the trucking industry and in the wake of the 2007-2009 financial crisis. Over the next few decades, plans are expected to struggle due to a variety of factors, including unsustainable investment losses, fewer workers employed in labor-intensive industries, and the exit of employers from pension plans. Without a legislative fix in Congress, the collapse of the pension system could force many employers into bankruptcy and millions of retirees to lose their primary means of retirement security - and it would lead to severe consequences for the country's economy.

Both Heitkamp and Smith fought to be appointed to the bipartisan committee, which is required to hold at least five public meetings, including hearings focused on retirees, current workers, and small businesses. The Committee consists of 16 members, including eight senators and eight congressmembers, equally divided between Republicans and Democrats. The Committee will have instructions to report a bill by the last week of November 2018. Heitkamp helped secure the creation of the Committee as part of the overall budget compromise that Congress passed in February.

Last month, Heitkamp updated Fargo workers and retirees following the first meeting of the congressional committee.

Background

For years, Heitkamp has stood with North Dakota's workers and retirees and fought to safeguard their retirement savings, and she has specifically fought to protect those who are part of the Central States Pension Fund from harsh cuts. In November 2017, Heitkamp announced the Butch Lewis Act - which she helped write and introduce - during a rally in Bismarck with over 100 workers, retirees, and their families. The bill would put the pension plans back on solid footing so current workers, retirees, and employers have the security of knowing their pensions will be available for decades to come, without cuts. The creation of the Select Committee will provide a process for Congress to consider Heitkamp's bill and work toward a bipartisan solution that can solve the pension crisis.

Once seated as Senator, Smith immediately started fighting to solve the multiemployer pensions crisis. She's talked with retirees whose hard-earned pensions are at risk of being drastically reduced due to chronic underfunding of the Central States Pension Fund, and she fought for a seat on the bipartisan Senate panel because she's committed to finding solutions to this problem. Smith has cosponsored legislation - the Butch Lewis Act--to help protect the pensions of retirees in Minnesota and across the country.