Education and Labor Committee Republican Leader Virginia Foxx (R-NC) spoke on the House floor in opposition to H.R. 6929, a taxpayer-funded bailout for an underfunded, privately-run pension plan:
“Madam Speaker, when it comes to bailouts, Congress just can’t seem to help itself. Under President Biden taxpayers have been forced to bankroll the so-called American Rescue Plan which included an uncapped bailout for failing and insolvent multiemployer pensions.
“From footing the bill for this excessive government spending to record-high gas prices, taxpayers can’t catch a break in Biden’s America.
“And today we’re considering ANOTHER bailout that will force taxpayers to cover the tab for a failed, privately-run pension.
“What message does this send to the men and women who have their own retirement accounts to worry about or have no retirement account at all?
“More pension bailouts set a damning precedent.
“In case anyone has forgotten, we work FOR hardworking taxpayers in this country. As Members of Congress, we have an obligation to ensure that taxpayer dollars are being spent as efficiently and effectively as possible. Unfortunately, too many ignore this important duty and are happy to mortgage the future of the next generation with reckless spending.
“On top of the price tag, there have been NO HEARINGS and NO MARKUPS on H.R. 6929.
“Is this the standard the House wants to operate under—one where any piece of legislation can be fast-tracked to the floor without due consideration and scrutiny?
“Under Democrat control, good governance has long been abandoned in the People’s House.
“In 2009, when Delphi Corporation completed its four-year bankruptcy, its defined benefit pension plans were terminated and taken over by the Pension Benefit Guaranty Corporation (PBGC). A process that has been well established.
“At that time the Delphi pension plans were collectively underfunded by $7.2 billion. Delphi did not make required contributions to its pension plans in the four years it was moving through bankruptcy.
“The Salaried Employee Plan in particular was only 48 percent funded, with $2.4 billion dollars in assets and liabilities of $5 billion dollars.
“Fast forward to today, and we’re considering a bill that would dole out money like candy.
“Under this bill, participants would receive a retroactive lump sum payment, or ‘top up,’ of the difference between what was paid by PBGC and what the plans would have paid had they not been terminated.
“But here’s the kicker, Madam Speaker: this ‘top up’ would come with an additional 6 percent interest, and all participants would receive their original monthly benefits moving forward.
“Let’s turn our attention to the precedent that this bill sets for the entire single-employer pension system.
“Currently, PBGC’s single-employer insurance program is funded exclusively by premiums paid by employer plan sponsors and does not receive taxpayer dollars.
“PBGC is the trustee of over 5,000 terminated single-employer plans.
“And, Madam Speaker, please pay attention to this next part.
“By topping up one plan, Congress will be pressured and expected to top up the remaining 5,000 terminated plans and every future terminated plan.
“And how many plans does PBGC currently ensure? More than 23,000 active single-employer plans are currently ensured.
“So, Madam Speaker, what’s next on the docket?
“Should Congress roll up its sleeves and make whole every American’s 401(k) plan that took a few hits?
“Again, how about Americans who do not have a pension plan? There are many of those.
“Imagine the hare-brained schemes that Congress could start pulling out of its hat if given this encouragement. We should be protecting taxpayers, not feeding them to the wolves.
“This bill is a slap in the face to fiscal responsibility.
“H.R. 6929’s cash giveaway will force taxpayers to shoulder a cost of $800 million over the next decade, and $1.3 billion in all to bail out an underfunded, privately-run pension plan.
“Another bailout of failing pension plans does nothing but stick it to hardworking taxpayers.
“This bill simply underscores the fact that Congress is too misguided to focus on real issues.
“Madam Speaker, hardworking taxpayers cannot afford more senseless bailouts. Enough is enough.”
Original source can be found here.
