Good Afternoon. First, I want to thank Congressman Pomeroy for crafting a strong bill and having the political courage to offer it. Second, I want to express support for the bill on behalf of
· 150 thousand sheet metal workers, their families and employers, and
· the support of the National Coordinating Committee for Multiemployer Plans and the Multiemployer Pension Plan Coalition.
The recession’s impact on multiemployer plan funding endangersour employers’ ability to be competitive and to employ our members. By any measure these employers are truly small enterprises. For example, in the unionized construction industry, over 90% of employers employ 20 persons or less.
During harsh economic times, our employers have found a way to make additional contributions to improve funding. Union members have played their part by forgoing wages and accepting benefit cuts in order to stabilize their pension funds for themselves and future generations.
Despite shared sacrifice, a large number of multiemployer funds are rapidly reaching the point where they can only meet federal funding requirements by massive contribution increases.
Such increases would be disastrous for our members and for the responsible employers who are scrambling for scarce capital while providing good wages, pension and health benefits. Let’s face it, if we want to see this budding recovery take hold, we have to ensure that workers have sufficient resources to spend on goods, service and taxes, which can only be achieved if employers can afford to pay good wages and provide good benefits.
Like Congressman Pomeroy, we believe that multiemployer defined benefit pension plans hold the best promise for promoting secure, taxpaying retirees. History proves this. For about 60 years, multiemployer pension plans have provided substantial and secure retirements to millions of union members and their families. For most of this period, these plans prospered because employers and unions found a way at the bargaining table to balance the need for decent wages and benefits with fair employer profits.
For the vast majority of plans, the necessity for legislative relief is not due to benefit design, risky investments, or mismanagement, but is a function of the worldwide financial crisis.
Building on the approach taken by the Pension Protection Act, Congressman Pomeroy’s bill benefits both union members and employers alike by giving them more time and tools to help themselves. Without going into specifics, several provisions give employers and unions the time needed to make changes in wages and benefits to secure retirement income into the future.
But make no mistake, the bill reinforces existing law which requires both Union and Employer Trustees act to as prudent stewards of our members’ retirement. This is no bailout. Rather it is a mandate: get to the bargaining table and fix what ails with your plans – without derailing the recovery.
Thank you for listening and thank you Congressman for all you do to support our plans.