Protect Your RS Plan Pension Benefits

Chris Stephen from NRECA explains why we need your support for
HR 3596 – the Rightsizing Pension Premiums Act of 2017

 

Issue

Over 880 rural electric cooperatives participate in the defined-benefit “multiple-employer” pension plan sponsored by NRECA, covering over 56,000 employees in 47 states. Co-op employees are the backbone of our core mission to provide, safe, affordable, and reliable electricity. But rules designed for other types of pension plans were increasing volatility and cost pressures on participating cooperatives.

 

Background

In 2014 Congress passed a law recognizing that – by our nature – we pose virtually no risk of default to the Pension Benefit Guaranty Corporation (PBGC), and yet we continue to pay insurance premiums as if we were such a risk. (See Cooperative and Small Employer Charity Pension Flexibility Act of 2014 (Pub. L. No. 113-97) (“CSEC”). Current PBGC rules designed for “single-employer” for-profit companies inappropriately require us to divert scarce resources from our core mission.

 

NRECA position

We urge Congress to stop the PBGC from grossly overcharging charitable and rural cooperative “multiple-employer” defined benefit plans, by passing H.R. 3596, the “Rightsizing Pension Premiums Act of 2017,” led by Reps. Mike Kelly (R-PA) and Ron Kind (D-WI). In 2014 Congress recognized that – by our nature – we pose virtually no risk of default to the PBGC, yet we continue to pay premiums as if we were such a risk. (See Cooperative and Small Employer Charity Pension Flexibility Act (Pub. L. No. 113-97) (“CSEC”).

 

Fast Fact

PBGC Fast Fact

 

Boy Scouts, Girl Scouts, Christian Schools, Jewish Feds, Ag/Telephone Co-op Endorsement

Joint Coalition Letter of Support

 

American Retirement Association Endorsement

Letter of Support for the Rightsizing Pension Premiums Act of 2017

 

NCFC – National Council of Farmer Cooperatives Endorsement

Letter of Support for the Rightsizing Pension Premiums Act of 2017