Why a Coal Miner Pension Bailout Could Open the Door to a $600 Billion Pension Bailout for All Private Unions
Congress is looking to pass legislation that would use taxpayer dollars to bail out the overpromised, underfunded pension plan of the United Mine Workers of America (UMWA). Such an unprecedented move would send the message that Congress will stand behind sending trillions of dollars in overpromised, underfunded public and private pension obligations across the country. The federal government already provides a backstop for failed union and other private pension plans by insuring them through the Pension Benefit Guaranty Corporation (PBGC). Congress should avoid bailing out select pension plans at all costs and should instead reform the PBGC so that it can meet its obligations without a taxpayer bailout.