IL SR2013

Over 10 million Americans participate in multiemployer pension plans supporting 13.5 million jobs, with the Central States Pension Fund as the largest plan serving 378,000 individuals across 1,335 employers.

The Central States Pension Fund is projected to become insolvent by 2026 due to 2008 financial crisis losses, and the Pension Benefit Guaranty Corporation faces a $65 billion deficit and potential insolvency by 2025.

The Butch Lewis Act (Senate Bill 2147) would create a Pension Rehabilitation Administration within the U.S. Department of Treasury to provide low-interest government-guaranteed loans to distressed plans, with interest-only payments for 29 years and principal repayment in year 30.

Illinois is directly impacted with 25,500 Central States Pension Fund participants receiving $166 million annually in benefits and paying $13 million in taxes.

The Illinois Senate urges the U.S. Congress to immediately pass the Butch Lewis Act to prevent economic harm from multiemployer pension plan failures and requests copies be sent to federal legislators.