“The PBGC should use existing statutory authority to protect workers, retirees, employers, and taxpayers by closely monitoring and taking appropriate remedial action with regard to badly run and underfunded multiemployer union pension plans, including termination where appropriate.” (General Welfare, Dept. of Labor, p. 610)

By allowing the PBGC (Pension Benefit Guaranty Corporation) to take control over union pension plans, this plan will cause:

1. Increased Financial Insecurity: Terminating underfunded pension plans will mean that retirees and seniors currently receiving benefits may see those benefits significantly reduced or entirely eliminated. This will lead to increased financial insecurity among seniors who rely on these funds for their living expenses.
2. Loss of Promised Benefits: Stricter oversight will result in reduced payouts if the PBGC steps in to manage or terminate a plan. The PBGC has limits on the benefits it guarantees, often lower than what retirees were originally promised, which may leave seniors unable to cover their costs.
3. Administrative Delays: The process of closer monitoring and potential termination involves extensive administrative procedures, which will delay the payment of benefits. Delays in receiving pension funds can have dire consequences for seniors’ day-to-day living and healthcare needs.
4. Uncertainty and Stress: The possibility of their pension plan being terminated or restructured creates uncertainty and stress for seniors. Planning for financial needs becomes exceedingly difficult under such conditions, exacerbating anxiety and potential mental health issues.
5. Reduced Confidence in Retirement Systems: The proposal might undermine overall confidence in the stability and reliability of pension plans. Seniors might become more conservative in their spending, impacting their quality of life, due to fears of further reductions or losses.

In summary, while the proposal aims to safeguard broader systemic and taxpayer interests, it places significant immediate financial risk and uncertainty on retirees and seniors dependent on multiemployer pension plans, potentially leading to reduced benefits, administrative delays, and heightened stress and anxiety. It will reduce the power of unionized workers and negatively impact those at the end of their careers.