Senator Casey re: the Susan Muffley Act

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Senator Casey re: the Susan Muffley Act

Postby remberger » Tue Aug 02, 2022 2:40 pm

From: U.S. Senator Bob Casey <senator@casey.senate.gov>
To: "rembergerjr@yahoo.com" <rembergerjr@yahoo.com>
Sent: Monday, August 1, 2022, 01:54:14 PM EDT
Subject: Response from Senator Casey

Dear Mr. Emberger:

Thank you for taking the time to contact me regarding the Susan Muffley Act of 2022, S. 3766. I appreciate hearing from you about this issue.

When General Motors (GM) filed for bankruptcy during the Great Recession, the U.S. Pension Benefit Guarantee Corporation (PBGC) assumed responsibility for the terminated benefits of its employees, but could not pay an individual more than a statutory maximum. As a result, approximately 20,000 retirees from GM's largest auto parts supplier, Delphi, had their retirement benefits cut by 30 percent or more. Delphi Salaried Retirees Association (DSRA) took their case to the courts, fighting a protracted legal battle against the PBGC that resulted in an appeal to the Supreme Court. When the Supreme Court declined to hear the case, there were few options left to remedy this issue. Delphi retirees, of which there are just over 100 in the Commonwealth, have continued the fight to restore their earned benefits.

The Susan Muffley Act, named after the late DSRA leader and spouse to a retired Delphi employee, would restore the terminated pensions of Delphi retirees. Specifically, this bill would instruct the PBGC to recalculate the benefits of Delphi salaried retirees to make up the difference between what they earned under their prior arrangement with their employer and what they received after GM's 2009 bankruptcy. Those who have already begun receiving benefits would receive a lump sum payment with interest to make them whole.

I believe a healthy pension system provides workers with an earned safety net for retirement and should be fostered. To accomplish this goal, we must reinvigorate our pension system so that the responsibility of proper saving for retirement is shared by workers and their employers. Over the last few decades, traditional employer-sponsored pension plans, known as defined benefit plans, have been on the decline. The decline of coverage by defined benefit plans has trended with the overall decline of union representation. In 1983, 16.8 percent of the private-sector workforce belonged to a labor union. In 2020, that share was 7.2 percent. The decline in worker voice and representation has not only made it more difficult for workers to bargain for wages and other benefits, but it has also led to the decline in defined benefit plans, which has left millions of retired workers facing severe financial challenges.

I am proud that legislation that I cosponsored, the Butch Lewis Emergency Pension Plan Relief Act, was included in the American Rescue Plan Act and signed into law by President Biden on March 11, 2021. This legislation will secure the retirement benefits of workers and retirees in multiemployer pension plans in critical financial shape, with no cuts to workers' hard-earned benefits. It will also support the PBGC by putting it back on solid financial footing, as well as provide relief for single employer pension plans.

The Susan Muffley Act of 2022 has been referred to the Senate Finance Committee, of which I am a member. Should the committee consider this bill, please be assured that I will keep your thoughts in mind.

Again, thank you for sharing your thoughts with me. Please do not hesitate to contact me in the future about this or any other matter of importance to you.

For more information on this or other issues, I encourage you to visit my website, https://casey.senate.gov


Sincerely,
Bob Casey
United States Senator
remberger
 
Posts: 118
Joined: Sat Jun 17, 2017 5:53 am

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