Costa Votes to Restore Retirement Security to Working-Class Americans
(Washington, D.C.) – Congressman Jim Costa (CA-16) released the following statement following House passage of H.R.397 – the Rehabilitation of Multiemployer Pensions Act of 2019:
“The backbone of our workforce – truckers, miners, iron and autoworkers - are invested in multiemployer pension plans,” said Costa. “This bipartisan legislation helps restore security for the 1.3 million working-class Americans who have paid into these plans their entire careers. Should these plans fail, the results would be catastrophic for both our economy and our workforce. I’m glad Congress acted responsibly today to avoid the loss of billions of taxpayer dollars and secure these workers the retirement they have earned.”
The bill would establish a new office within the Treasury, the Pension Rehabilitation Administration (PRA), which would allow pension plans to borrow the money they need to provide retirement security for retirees and workers into the future. These 30-year low-interest loans could save up to $240 billion taxpayer dollars and well over 55,000 jobs over ten years. Administrative costs of the PRA and the loans themselves, will be funded through Treasury-issued bonds sold to large investors.