We now have another showdown between vastly different multiemployer relief proposals. Recently, Representative Richard Neal (D-MA) introduced the Emergency Pension Plan Relief Act of 2021 (EPPRA). This is similar to the previously released Butch-Lewis Act, although there is at least one significant difference of note. EPPRA now competes with the bill introduced in December by Senator Grassley (R-IA) called the Chris Allen Multiemployer Pension Recapitalization and Reform Act of 2020 (Allen Act).
While there are several differences between bills, at the core is the major philosophical difference on how to solve the PBGC financial crisis—EPPRA seeks to do it through federal funding while the Allen Act seeks to have the majority of the money come from every multiemployer pension plan by way of significantly increased PBGC premiums.
The Legislative Update offers a comparison of the key components that will be of most interest to Trustees, at least immediately.