Millions of pensions riding on this Congressional committee's work
Roberta Dell has worked for 46 years making lollipops, and she loves her job. But she worries that retirement may not be as sweet as the Dum Dum lollipops she bags.
Dell works for the Spangler Candy Company in Bryan, Ohio - a family-owned business that employs 550 workers, and makes the venerable candy. Spangler was organized by the International Brotherhood of Teamsters labor union in 1950, and it became part of the Central States multiemployer pension plan in 1972.
But the outlook for her pension is highly uncertain. The Central States Pension Fund has said it is on a path to insolvency within 10 years unless Congress can save it. The fund, which covers more than 400,000 retirees and active workers, has become a symbol for all that has gone wrong with multiemployer pension plans - traditional defined benefit plans jointly funded by groups of employers. These are typically small companies in industries like construction, trucking, mining and food retailing that would not typically sponsor a pension plan of their own.
Dell, who is the Teamster chief steward at Spangler, testified earlier this month at a hearing of a special joint Congressional committee convened to examine possible solutions for workers like her. In this video, Dell and her boss Bill Martin talk about the pension crisis at the hearing, which was held in Columbus, Ohio. (Her remarks begin just after the one-hour mark):
More than 10 million U.S. workers and retirees are covered by 1,400 multiemployer pension plans. But roughly 200 are severely underfunded
The joint special committee was instructed to write a report and deliver proposed legislative language by Nov. 30. This month, the committee has been holding hearings to hear from stakeholders like Dell, as well as pension experts.
Jolt survivor wins her primary run-off race
In Jolt: From Trauma to Transformation, I tell the story of Lucy McBath, who became a nationally-known advocate for gun control following the 2012 murder of her son, Jordan Davis. This week, Lucy took her next step as an activist, winning a primary run-off race in the Democratic primary for Georgia’s 6th Congressional District. She will now compete in the fall election against incumbent Karen Handel. Learn more about Lucy’s story in this excerpt from Jolt.
Will we see retirement saving legislation this year?
Lawmakers are working on the biggest changes to U.S. retirement savings in more than a decade, exploring several proposals that could make it easier for small companies to offer 401(k) plans and for workers to guarantee themselves an annual income after they retire.
New York state steps up on fiduciary regulations for annuities
New York issued a final regulation Wednesday that would raise the standard of care for sales of life insurance and annuities. The measure would require insurers to establish policies and procedures that ensure agents and brokers put the interests of consumers ahead of their own when making a recommendation. Under the regulation, financial incentives and compensation should not influence the sales professional. Via Investment News.
New Social Security scams
The Social Security Administration (SSA) is warning Americans about scammers posing as employees of the agency in order to steal their personal information.
The SSA is sounding the alarm this week about two types of scams. In the first, an individual gets a phone call with an automated recording saying that his Social Security number “has been suspended for suspicion of illegal activity.” The fraudster then provides a phone number and says the person must call it to fix the problem or else the person's assets will be frozen. Anyone who does call the number is asked to provide personal information the scammer can then use to commit identity theft or other fraud. Via AARP.
Tweet of the week
No biggie, just the official in charge of Medicare telling you why Medicare is a socialist nightmare no one should want to get their insurance from. https://t.co/VRZ48dKKQq
July 26, 2018