Consumer Agenda for Retirement Security

Initiative #4: Improve traditional and hybrid pension plans

C. Protect earned pension benefits when multiemployer plans become underfunded.

ERISA and the Internal Revenue Code protect already-earned benefits, including subsidized early retirement benefits, which for many employees are a particularly valued and valuable benefit.  The Pension Protection Act provides that a multi-employer plan is prohibited from paying these already-earned benefits if the plan falls below a statutory funding target.  This is a departure from the philosophy that underlies ERISA, namely that once a benefit is earned, it cannot be taken away.  The PPA should be amended to eliminate this unfair provision and restore the statute to one that protects rather than eliminates already-earned benefits.

Learn more about the other initiatives in the Consumer Agenda for Retirement Security.

Initiative 1: Promote a more adequate and secure private retirement income system.
Initiative 2: Empower workers to promote their own retirement security.
Initiative 3: Improve retirement savings plans.
Initiative 4: Improve traditional and hybrid pension plans.
Initiative 5: Make retirement plans fairer for workers and their spouses.

Print the Consumer Agenda for Retirement Security [PDF].