Congress eyes move to cut pension benefits

The latest assault on private pensions may be coming from the U.S. Congress.

Lawmakers on Wednesday were finalizing a deal to shore up the government's pension insurance fund with provisions that would raise premiums and allow troubled pension plans covering more than one employer to cut retiree benefits.

As of midday Wednesday, the reform provisions, which drew loud opposition from unions and other groups representing retirees, were not included in the latest version of a massive, $1.1 trillion spending bill, according to a spokeswoman for the House Appropriations Committee. The measure may be voted on as an amendment in the Rules Committee, she said.

Payments to backstop these so-called multiemployer pension plans have run to hundreds of millions of dollars in the last decade. The Pension Benefit Guaranty Corp. has warned it may run out of funds unless Congress implements reforms.

But the changed proposed Tuesday has drawn fire from unions and other retirement advocates.

"The problem is much more serious than skimming retirement benefits to keep the PBGC on life support," said Richard Greer, a spokesman for the Laborers' International Union of North America. This proposal "would siphon off tens of millions of dollars in hard earned retirement benefits to try and rescue the PBGC."

http://www.cnbc.com/id/102257137