House Members Meet with Union Leaders Re: Transparency for Employee Pension Plans

JEFFERSON CITY, Mo. – State Reps. Bill Lant, Holly Rehder, and Rob Vescovo recently sat at the negotiating table with representatives from several different unions to discuss ways to provide new layers of transparency and accountability for employee pension plans. The three called their meeting unprecedented and said they are hopeful it represents a good faith effort by unions to protect their members by allowing them to have the full picture when a pension plan is underfunded and/or unsustainable.

“This is a strong step in the right direction as we look for common ground where we can stand together to protect workers from bankrupt pension funds that will jeopardize their financial security during their retirement years,” said Vescovo, R-Arnold. “The representatives we met with indicated a willingness to work with us on this issue, which I hope will continue to drive meaningful discussion that will lead to policy changes that will put some effective protections in place for workers who deserve answers.”

Lant, Rehder, and Vescovo are in support of changes that would ensure each employee paying into a pension plan has full knowledge of where that plan stands in regard to its financial stability and sustainability. Vescovo has already filed legislation, HB 1540, that would require pension plans to annually report to their participants a comprehensive overview of the fiscal health of the system.

All three members noted that many pension plans are currently dramatically underfunded and that union members have said there is a lack of information that is readily available to them.

“We see union pension funds that are underfunded by billions of dollars, and it is clear that we must give plan participants the power to know how the plan they are paying into is handling their money,” said Lant, R-Pineville, who chairs the House Workforce Standards and Development Committee. “It’s time for more transparency and accountability with these pension plans, and I hope the unions will continue to work with us to put these much-needed changes into place.”

“These are reforms that are not anti-union, they benefit the union member 100%. More transparency will lead to greater accountability as workers can keep an eye on their pension plans and how they are managed,” said Rehder, R-Sikeston, who chairs the House Select Committee on Labor and Industrial Relations. “I think and hope this is an issue where the legislature and the unions can be on the same page together so that we can ensure workers know exactly what their retirement benefits look like as they plan for their future.”