{"id":471320,"date":"2022-07-07T04:53:00","date_gmt":"2022-07-07T01:53:00","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/controversial-pension-rescue-plan-finalized\/"},"modified":"2022-07-07T04:53:00","modified_gmt":"2022-07-07T01:53:00","slug":"controversial-pension-rescue-plan-finalized","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/controversial-pension-rescue-plan-finalized\/","title":{"rendered":"#: Controversial pension rescue plan finalized"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_89 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6af6d0878a7fd\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6af6d0878a7fd\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/controversial-pension-rescue-plan-finalized\/#%E2%80%9C_Controversial_pension_rescue_plan_finalized%E2%80%9D\" >&#8220;: Controversial pension rescue plan finalized&#8221;<\/a><ul class='ez-toc-list-level-2' ><li class='ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/controversial-pension-rescue-plan-finalized\/#Biden_outlines_final_rules_for_pension_bailout_plans_can_invest_a_third_of_financial_assistance_they_receive_in_stocks\" >Biden outlines final rules for pension bailout; plans can invest a third of financial assistance they receive in stocks<\/a><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/buradabiliyorum.com\/en\/controversial-pension-rescue-plan-finalized\/#Eleanor_Laise\" >Eleanor Laise<\/a><\/li><\/ul><\/li><\/ul><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h1><span class=\"ez-toc-section\" id=\"%E2%80%9C_Controversial_pension_rescue_plan_finalized%E2%80%9D\"><\/span>&#8220;: Controversial pension rescue plan finalized&#8221;<span class=\"ez-toc-section-end\"><\/span><\/h1>\n<h2 class=\"article__subhead\" itemprop=\"alternativeHeadline\"><span class=\"ez-toc-section\" id=\"Biden_outlines_final_rules_for_pension_bailout_plans_can_invest_a_third_of_financial_assistance_they_receive_in_stocks\"><\/span>\n  Biden outlines final rules for pension bailout; plans can invest a third of financial assistance they receive in stocks<br \/>\n<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><\/p>\n<div class=\"column column--full article__content\">\n<div class=\"article__side\">\n<div class=\"container--sticky not-active\">\n<div id=\"cx-next\" data-nosnippet>\n              <\/div>\n<\/p><\/div>\n<\/p><\/div>\n<div id=\"js-article__body\" class=\"article__body article-wrap at16-col16 barrons-article-wrap\" itemprop=\"articleBody\" data-sbid=\"WP-MKTW-0001005975\" role=\"document\">\n<div class=\"barrons-article-ad-wrapper\">\n<div data-track=\"barrons-article-ad-wrap\" class=\"barrons-article-ad sticky_item\">\n<div class=\"barrons-main-article-ad-target sticky_target body_ad\" aria-hidden=\"true\"><\/div>\n<\/p><\/div>\n<\/p><\/div>\n<div data-layout=\"\n                inline\" data-layout-mobile=\"\" class=\"\n          media-object\n          type-InsetArticleReader\n              \n              inline\n  article__inset\n          article__inset--type-InsetArticleReader\n              article__inset--inline\n  \"><\/p>\n<div class=\"media-object-article-reader\">\n<div class=\"audioplayer\" data-sbid=\"WP-MKTW-0001005975\" role=\"region\" aria-label=\"Listen to Article\" tabindex=\"-1\" id=\"articlereader\" data-show-title=\"false\" data-theme=\"wsj-article-reader\" data-show-header=\"false\" data-show-subscribe=\"false\" data-ads-enabled=\"true\" data-save-publication=\"false\">\n        <\/div>\n<\/p><\/div>\n<\/p><\/div>\n<p>       The White House on Wednesday heralded the finalization of a hotly debated plan to stabilize troubled pensions.\u00a0<\/p>\n<p> Speaking in Cleveland, where he was joined by union workers and retirees, President Joe Biden announced a final rule implementing a financial assistance program for multiemployer pension plans. \u201cThose retirees who lost their benefits will have them restored retroactively,\u201d Biden said. \u201cWe turned a promise broken into a promise kept.\u201d<\/p>\n<div class=\"paywall\">\n       The American Rescue Plan passed early last year mandated the program, allowing certain underfunded multiemployer plans to <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>ly for taxpayer-funded assistance that can help them stabilize their finances and restore benefits that were previously cut. Interim rules for the program issued last summer by the Pension Benefit Guaranty Corp. drew criticism from pension consultants, plan trustees and other experts who were concerned that the method for calculating the financial assistance wasn\u2019t generous enough to ensure the plans\u2019 long-term survival.\u00a0<\/p>\n<p>The rule is \u201cresponsive to public comments\u201d and includes some key changes such as allowing plans to invest a portion of their financial-assistance funds in higher-return assets, PBGC director Gordon Hartogensis said in a press briefing Wednesday. Taken together, modifications in the final rule are designed to ensure that all plans receiving assistance will get enough funds to remain solvent and pay full benefits through at least 2051, the White House said in a statement.<\/p>\n<p>About 1,400 multiemployer pension plans, created through agreements between unions and two or more employers, cover nearly 11 million participants, many of them workers and retirees in industries such as construction, trucking and manufacturing. Many of the plans have been hit hard by a decline in unionization, employer withdrawals from the plans and investment losses, and a 2014 law allowed some troubled plans to slash the benefits of current retirees\u2013a move derided by critics as undermining fundamental protections enshrined in federal pension law.\u00a0<\/p>\n<p>Before the American Rescue Plan, over 200 multiemployer plans were facing near-term insolvency, threatening to leave 2 to 3 million participants without their full earned benefits, the White House said. The financial assistance program has also extended to 2055 the solvency of the PBGC\u2019s multiemployer insurance program, which was previously expected to run out of money in 2026, according to the White House statement.\u00a0<\/p>\n<p>As of Wednesday, the PBGC has approved over $6.7 billion in financial assistance for plans covering over 127,000 workers and retirees. The agency, which insures defined-benefit pension plans, expects it will ultimately distribute $74 billion to $91 billion worth of financial assistance to multiemployer plans.\u00a0\u00a0<\/p>\n<p>The final rule allows plans to invest up to one-third of their financial-assistance funds in stocks and other higher-return assets, whereas the interim rule <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/general\/\" data-internallinksmanager029f6b8e52c=\"3\" title=\"General\" target=\"_blank\" rel=\"noopener\">general<\/a>ly required that money to be invested in investment-grade bonds. \u201cIt looks like they\u2019re backing off some of the very stiff requirements\u201d of the interim rules, said Gene Kalwarski, CEO of actuarial consulting firm Cheiron.\u00a0<\/p>\n<p>But the inclusion of more aggressive investment options raises some concerns, said Russell Kamp, managing director at investment management firm Ryan ALM. Although stocks can be expected to outperform over the long haul, he said, \u201cwhat happens if the U.S. falls into either stagflation or recession in the near term that dramatically reduces equity valuations?\u201d The final rules, he said, \u201cshould have kept the original mandate.\u201d\u00a0<\/p>\n<p>The new 33% limit on stocks and other higher-return investments will allow plans to grow their financial-assistance funds \u201cand increase the potential to pay benefits through 2051 while limiting the total risk exposure of taxpayer-funded assistance,\u201d the PBGC said in its final rule. The final rule allows only \u201cresponsible\u201d return-seeking investments, the White House said, noting that the funds \u201cmust be invested in publicly traded assets on liquid markets to ensure responsible stewardship of federal funds.\u201d\u00a0<\/p>\n<div id=\"cx-membership-tile\"><\/div>\n<p>House Education and Labor Committee chairman Robert C. \u201cBobby\u201d Scott, Democrat of Virginia, said in a statement Wednesday that the American Rescue Plan \u201ckeeps the promises made to retirees, saves businesses from going under, and shields taxpayers from the even greater cost of a multiemployer pension collapse.\u201d\u00a0<\/p>\n<p>Some Congressional Republicans on Wednesday criticized the final rules. Democrats \u201cchose a deeply flawed bailout of a select group of privately managed retirement plans,\u201d Republicans Virginia Foxx of North Carolina and Rick Allen of Georgia said in a statement, adding that the American Rescue Plan \u201ccreates perverse incentives for further mismanagement and underfunding and leaves the taxpayer holding the bag.\u201d\u00a0<\/p><\/div>\n<\/div><\/div>\n<p><\/p>\n<div class=\"byline article__byline\">\n<p>    <span>By<\/span><\/p>\n<div class=\"author mobile-scrim hasMenu\" data-scrim='{\"type\":\"author\",\"header\":\"Eleanor Laise\",\"subhead\":\"The Wall Street Journal\",\"list\":[{\"type\":\"link\",\"icon\":\"bio\",\"url\":\"https:\/\/www.marketwatch.com\/topics\/journalists\/eleanor-laise\",\"text\":\"Biography\"},{\"type\":\"link\",\"icon\":\"twitter\",\"url\":\"https:\/\/twitter.com\/EleanorLaise\",\"text\":\"@EleanorLaise\"},{\"type\":\"link\",\"icon\":\"email\",\"url\":\"http:\/\/www.marketwatch.com\/news\/mailto:eleanor.laise@dowjones.com\",\"text\":\"eleanor.laise@dowjones.com\"}]}' itemscope itemprop=\"author\" itemtype=\"http:\/\/schema.org\/Person\">\n<h4 itemprop=\"name\"><span class=\"ez-toc-section\" id=\"Eleanor_Laise\"><\/span>Eleanor Laise<span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p><ufc-follow-author-widget product=\"marketwatch\" author-id=\"243_MW\" author-name=\"Eleanor Laise\" signin-url=\"https:\/\/accounts.marketwatch.com\/login?target=https%3A%2F%2Fwww.marketwatch.com%2Fstory%2Fcontroversial-pension-rescue-plan-finalized-11657155778%3Frss%3D1%26siteid%3Drss\" panda-api=\"https:\/\/follow-api.marketwatch.com\"><\/ufc-follow-author-widget><\/p><\/div>\n<\/div>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/news\/\" target=\"_blank\" rel=\"noopener\">News category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"http:\/\/www.marketwatch.com\/news\/story.asp?guid=%7B20C05575-04D4-B545-7F59-978D89C161F9%7D&#038;siteid=rss&#038;rss=1\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;: Controversial pension rescue plan finalized&#8221; Biden outlines final rules for pension bailout; plans can invest a third of financial assistance they receive in stocks The White House on Wednesday heralded the finalization of a hotly debated plan to stabilize troubled pensions.\u00a0 Speaking in Cleveland, where he was joined by union workers and retirees, President&#8230;<\/p>\n","protected":false},"author":1,"featured_media":471321,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.mktw.net\/im-578475\/social","fifu_image_alt":"","footnotes":""},"categories":[70897],"tags":[],"class_list":["post-471320","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/471320","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=471320"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/471320\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/471321"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=471320"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=471320"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=471320"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}