Pension Bill Could Add $70 Billion in Group Annuity Sales
July 29, 2019 by Allison Bell
The House is preparing to vote on a measure that could rewire a major part of the U.S. retirement finance system: H.R. 397, the “Rehabilitation for Multiemployer Pensions Act of 2019″ bill.
The bill drafters want to provide financial assistance that the managers of the 1,400 U.S. multiemployer pension plans could use to transfer pension obligations to private insurers, by purchasing group annuities.
If the bill becomes law and works as drafters predict, a new Pension Rehabilitation Administration (PRA), and the PRA’s new Pension Rehabilitation Trust Fund, could keep more than 1 million of the 10 million multiemployer pension plan participants from losing access to the benefits they were promised.
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