The HEROES act is the extension of supplement unemployment benefits, or COBRA subsidies, or any of the other components which have gained much attention. In this bill in division D. title 1, the emergency pension plan relief act of 2020, which provides benefits for single and multi-employer pension schemes.
Single-employer plans are provided on standard fairs including the same funding relief which congress customarily provides in recessions, and which were omitted from the final version of the CARES act in march. Talking about multi-employer provisions, there is a whole different story. Butch lewis act was included by the democrats in the house proposed their alternative to the senate’s CARES act.
Mentioning that bill is a special “partition program” for plans in “critical and declining” as well as merely critical status, including those that fall into those classifications now, and at any time up through 2024. Partitioning implies that the PBGC takes over the liabilities for the remainder of the participants, becomes sound financially. Also, the benefit that was implemented for plans using MPRA to avoid insolvency would be restored for plans applying for a special partition and no new benefit cuts would be permitted in any case.
There is no limit to the money to be expanded: there is appropriated from the general funds’ such amounts as necessary. To some people, a multi-employer pension rescue package is a big stimulus package and may indeed have the seal of approval, but that is only it is a bill that has tacked on to such a bill merely to ease the procedural difficulties in the way of passage.
This bill is far from the bipartisan bill and in fact, makes consensus harder to reach. However, the house democrats may have likewise imperiled this cause, rescue and reform which is sorely needed.