House Backs $49 Billion Plan to Rescue Troubled Union Pensions

A new federal agency would make loans to underfunded pension plans under a measure passed 264-169 July 24 by the House.

The Rehabilitation for Multiemployer Pension Act (H.R. 397), commonly referred to as the Butch Lewis Act, would provide federal loans and grants to union pension plans sponsored by more than one employer if the plans are insolvent or facing insolvency.

A newly created Pension Rehabilitation Administration (PRA), which would be part of the Treasury Department, would administer the loans, and the grants would be administered by the Pension Benefit Guaranty Corp. The Congressional Budget Office estimates the ...