CBO Finds Pension-Saving Legislation Cheaper than Expected
The Butch Lewis Act, proposed legislation to help rescue multiemployer pension plans that are at risk of going insolvent, was previously expected to add $100 billion to the U.S. debt over ten years. A recent study by the Congressional Budget Office, however, revised that figure down to $34 million.
The legislation would establish the Pension Rehabilitation Administration, which would issue bonds. The proceeds of the sale of those bonds would then be used to fund low-interest loans for failing pension plans. This plan would likely save from insolvency over one hundred pension plans that cover 1.3 million participants.
While the Butch Lewis Act is still in committee and has not yet been introduced for a full Senate vote, the revised cost makes it more likely the legislation will advance. The committee has until late November to advance the bill for a floor vote.