Common use of THE SOLUTION Clause in Contracts

THE SOLUTION. The proposed reform was initially developed by the National Coordinating Committee for Multiemployer Plans. Representing both labor and management, the organization proposed allowing troubled plans to take action to save themselves. Education and the Workforce Committee Chairman Xxxx Xxxxx (R-MN) and senior Democrat Xxxxxx Xxxxxx (D-CA) have announced bipartisan multiemployer pension reform legislation that mirrors this proposal, which is backed by business and labor leaders and known as “Solutions, Not Bailouts.” It is the only available option that could save these failing plans, and it is the last chance that labor unions and their members have to gain some control over the future of their pensions. This reform would give multiemployer pension plans the tools they need to rescue themselves. The bipartisan agreement would provide the critical flexibility necessary to keep pension plans from going under and causing workers to lose everything. The proposal includes reforms to protect taxpayers and provide trustees with new tools to save troubled plans. It also includes important consumer safeguards to give participants in these plans a voice and to protect the most vulnerable retirees. Specifically, the bipartisan reform will:  Permit trustees of severely underfunded plans to adjust vested benefits, enabling deeply troubled plans to survive without a federal bailout.  Require approval by plan participants of any proposed benefit adjustments that take effect. This provision includes a fail-safe mechanism for those plans that present a systemic risk the multiemployer pension system.  Provide participant protections to safeguard the most vulnerable retirees, including disabled retirees and individuals age 75 and older.  Give the PBGC the authority to take earlier action to help save failing plans, reducing potential future costs.

THE SOLUTION. The proposed reform was initially developed by the National Coordinating Committee for Multiemployer Plans. Representing both labor and management, the organization proposed allowing troubled plans to take action to save themselves. Education and the Workforce Committee Chairman Xxxx Xxxxx (R-MN) and senior Democrat Xxxxxx Xxxxxx (D-CA) have announced bipartisan multiemployer pension reform legislation that mirrors this proposal, which is backed by business and labor leaders and known as “Solutions, Not Bailouts.” It is the only available option that could save these failing plans, and it is the last chance that labor unions and their members have to gain some control over the future of their pensions. This reform would give multiemployer pension plans the tools they need to rescue themselves. The bipartisan agreement would provide the critical flexibility necessary to keep pension plans from going under and causing workers to lose everything. The proposal includes reforms to protect taxpayers and provide trustees with new tools to save troubled plans. It also includes important consumer safeguards to give participants in these plans a voice and to protect the most vulnerable retirees. Specifically, the bipartisan reform will:  • Permit trustees of severely underfunded plans to adjust vested benefits, enabling deeply troubled plans to survive without a federal bailout.  • Require approval by plan participants of any proposed benefit adjustments that take effect. This provision includes a fail-safe mechanism for those plans that present a systemic risk the multiemployer pension system.  • Provide participant protections to safeguard the most vulnerable retirees, including disabled retirees and individuals age 75 and older.  • Give the PBGC the authority to take earlier action to help save failing plans, reducing potential future costs.