PBGC Director Joshua Gotbaum to Testify on Multiemployer Pension SystemLogo of the United States Pension Benefit Guaranty Corporation, an independent government agency. (Photo credit: Wikipedia)
On Wednesday, December 19 at 10:00 a.m., the Subcommittee on Health, Employment, Labor, and Pensions, chaired by Rep. Phil Roe (R-TN), will hold a hearing entitled, “Challenges Facing Multiemployer Pension Plans: Evaluating PBGC’s Insurance Program and Financial Outlook.” Pension Benefit Guaranty Corporation (PBGC) Director Joshua Gotbaum will testify. The hearing will take place in room 2175 of the Rayburn House Office Building.
Multiemployer defined benefit pension plans are created by collective bargaining agreements. The plans are administered jointly by a board of trustees equally representing employers and union officials. An aging workforce, weak economy, and fewer contributing employers threaten the long-term health of the multiemployer pension system. As a result, the plans are increasingly reliant upon PBGC for financial assistance, and the agency now faces $7 billion in future obligations.