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  • Issue Brief posted September 13, 2016 by Rachel Greszler Congress Needs to Address the PBGC’s Multiemployer Program Deficit Now

    The Pension Benefit Guaranty Corporation (PBGC) is a government entity that provides mandatory insurance to private pension plans. If a private pension plan fails, the PBGC pays out insured benefits so that pensioners are not left penniless.[1] The problem is, however, that the PBGC’s multiemployer program is itself insolvent and will likely run out of money to pay…

  • Backgrounder posted September 6, 2016 by Rachel Greszler Government Intervention in Coal Mining Seven Decades Ago No Justification for Pension Bailout Today

    Two bills introduced in Congress—S. 1714 in the Senate and H.R. 2403 in the House—would bail out the United Mine Workers of America (UMWA) pension plan with up to $490 million per year.[1] Such action would set an incredibly dangerous precedent, opening the door to taxpayer bailouts of more than $600 billion in unfunded union pensions, not to mention trillions of dollars…

  • Commentary posted August 31, 2016 by Rachel Greszler Will Uncle Sam be the mine union’s sugar daddy?

    Should taxpayers have to pick up the tab when unions break their promises? The United Mine Workers of America union thinks so. Its pension fund has promised workers $5.6 billion more than it can pay. Now that it is running out of money, the union has had its friends in Congress introduce legislation (HR 2403 and S 1714) that would use taxpayer funds to cover the…

  • Issue Brief posted August 15, 2016 by Rachel Greszler 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.…

  • Backgrounder posted July 27, 2016 by Rachel Greszler, James Sherk Why It Is Time to Reform Compensation for Federal Employees

    The federal government pays its employees more than they would earn in the private sector. Economic studies consistently find that federal employees enjoy both higher pay and substantially higher benefits than comparable private-sector workers. Alan Krueger, the former Chairman of President Barack Obama’s Council of Economic Advisers, documented this pay premium in the…

  • Issue Brief posted April 6, 2016 by Rachel Greszler Rescuing Entitlements and Pensions: Study Shows Americans Can Work Longer

    A new study from the National Bureau of Economic Research (NBER) estimates that Americans can work significantly longer than they currently do.[1] According to the study, Americans could work an additional 2.5 years to 4.2 years on average between the ages of 55 and 69. This is equivalent to a 30 percent to 50 percent increase in employment among this age group. This is…

  • Issue Brief posted April 1, 2016 by Salim Furth, Ph.D., Rachel Greszler Draft House Legislation Falls Short of Priorities for Puerto Rico

    Congress should not lose sight of key conservative priorities as it considers whether (and how) to respond to the economic and fiscal crisis in Puerto Rico. The troubled territory has been a laboratory for progressive politics and crony capitalism for decades. Predictably, the government has smothered the private sector, and workers receive a lower share of income in…

  • Commentary posted March 29, 2016 by Rachel Greszler Congress Wants Union Pension Bailout, but Can't Afford Promises

    Many workers have been promised far more in pensions than their employers — public or private — can afford to pay them. Puerto Rico, for example, will soon have to start tapping general revenues for some $750 million annually just to cover its pension IOUs. Stateside, a similar day of reckoning fast approaches the United Mine Workers of America. Unfortunately, as the…

  • Issue Brief posted March 22, 2016 by Rachel Greszler Congress Should Not Give Puerto Rico Federal Tax Subsidies

    Policymakers are considering extending federal tax credits such as the Earned Income Tax Credit (EITC) and Child Tax Credit (CTC)—but not the rest of the federal tax code—to Puerto Rico as a way to help the island emerge from its economic and fiscal crisis. This would amount to an expensive cash bailout and would not address the core problems that caused Puerto Rico’s…

  • Issue Brief posted March 14, 2016 by Rachel Greszler Congress Can Help Pensioners, But Not Through a Bailout

    Some lawmakers want to bail out a select group of coal workers’ pensions by tapping a fund designated for environmental cleanup. The Abandoned Mine Land Reclamation Fund (AML) is needed for cleanup of abandoned coal mines and should not be used to fund the pension and retiree health benefits of one particular coal miners’ union—the United Mine Workers of America (UMWA).…

  • Commentary posted February 12, 2016 by Rachel Greszler Puerto Rico Can Move Forward Without Congress

    Congress and the president have proposed various federal interventions and bailouts to save the cash-strapped and economically troubled commonwealth of Puerto Rico. Treasury Secretary Jack Lew sent a letter to Congress last month claiming that "only Congress can enact the legislative measures necessary to fully resolve this problem." Yet the island is working within its…

  • Issue Brief posted December 10, 2015 by Rachel Greszler Misguided Plan for Puerto Rico Would Set Dangerous Precedent

    Puerto Rico faces an imminent financial crisis caused by decades of economically harmful policies, prolific government spending, and broken—if not corrupt—governance. Claiming that this U.S. territory has no options on its own, the President and some Members of Congress have called for a bailout of Puerto Rico, including access to retroactive bankruptcy and other federal…

  • Issue Brief posted December 10, 2015 by Rachel Greszler The Multiemployer Pension Reform Act: Inadequate Response to Looming Pension Fund Insolvency

    According to the Pension Benefit Guarantee Corporation’s (PBGC’s) own 2015 annual report, the government entity tasked with insuring private-sector pensions faces a $76.3 billion shortfall.[1] In other words, the backstop that Congress created to prevent workers from losing their promised pensions could be worthless. Without further, significant reforms, the PBGC’s…

  • Issue Brief posted November 24, 2015 by Rachel Greszler Time to Cut Out the SSA as Middleman in SSDI Representation

    Unlike traditional attorney-client relationships in which the client pays the attorney at the conclusion of a case, attorneys who represent Social Security Disability Insurance (SSDI) claimants receive payment directly from the Social Security Administration (SSA), even though it is not the SSA’s money. SSDI claimants enter into private contracts with representatives to…

  • Issue Brief posted October 28, 2015 by Paul Winfree, Romina Boccia, Justin T. Johnson, Daren Bakst, Nicolas Loris, James L. Gattuso, Jason Snead, Rachel Greszler, Robert E. Moffit, Ph.D., David R. Burton, Curtis S. Dubay Analysis of the Bipartisan Budget Act of 2015

    The federal budget is on a dangerous trajectory and immediate corrective action is required. The U.S. national debt is at $18.1 trillion. According to the Congressional Budget Office (CBO), if the government remains on its currently planned course, it will spend $7 trillion more over the next 10 years than it will receive in taxes, piling on even more debt. Heritage…