The Wall Street Journal reports that today,
U.S. Reps. Susan Brooks (R-IN) and Ron Kind (D- WI) introduced bipartisan
legislation to provide relief to non-profits such as local Girl Scout councils,
which now have higher pension funding rules than taxable, for-profit companies.
This bill, the Charitable Pension Flexibility Act, which was developed in
collaboration with Girl Scouts of the USA (GSUSA), enables Girl Scouts and
similar charities with affiliates, such as universities and non-profit
hospitals, to opt-in early starting next year to the pension funding rules that
cover corporate plans.
“As
a former Girl Scout, I am pleased to support charitable organizations like the
Girl Scouts as they seek a level playing field with corporate America when it
comes to pension funding requirements,” said Rep. Brooks. “This common sense
legislation provides much needed flexibility allowing organizations such as the
Girl Scouts to continue serving communities in Indiana and across our nation.
Helping local Girl Scout councils succeed ensures millions of girls continue benefiting
from the life-long leadership lessons the organization provides.”
The
Charitable Pension Flexibility Act applies to charity pension plans with
multiple entities that are exempt from normal pension funding rules until 2017.
This straightforward bill would permit such plans to elect into the normal
rules in 2014. A technical correction that previously passed the Senate would
have permitted this same option.
“We
applaud the bipartisan leadership of Congresswoman Susan Brooks and Congressman
Ron Kind,” said Anna Maria Chávez, Chief Executive Officer at Girl Scouts of
the USA. “The pension issue is critical, and with every day that goes by it’s
threatening our councils’ ability to continue vital programs, offer
opportunities to girls, retain the staff and develop the volunteers who make
our organization a powerful force in the lives of young women.”
Absent
prompt Congressional relief, local Girl Scout councils will have to cut
programs, lay off staff, and engage in other cost-cutting measures. Local councils
are facing a 40 percent increase in their pension expense next year and a 62
percent increase over the next three years. Overall, councils across the
country will have to contribute $36 million more than a corporate plan sponsor
would in the same situation. This translates into approximately 113,000 girls
losing the benefits of Girl Scouting.
“The
Girl Scouts do great work in Wisconsin and across the country, teaching girls
and young women strong values and leadership skills that will help make them
the future leaders of America,” said Rep. Kind. “For over 100 years their name
has been synonymous with integrity, courage, and community service, and I’m
proud to support efforts to help keep their organization strong.”