Section 1 Short title
This Act may be cited as the “No Taxpayer Bailouts for Unsustainable State and Local Pensions Act”.
No Taxpayer Bailouts for Unsustainable State and Local Pensions Act
A BILL
To prohibit the Secretary of the Treasury and the Board of Governors of the Federal Reserve System from providing bailouts or other financial assistance to a pension plan of a State or political subdivision thereof, and for other purposes.
Sec. 2 Prohibition on bailouts for State and local pension funds
The Secretary of the Treasury and the Board of Governors of the Federal Reserve System may not provide any loan, grant, or other form of financial assistance to a pension plan (as defined under section 3 of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1002)) established or maintained by the government of any State or political subdivision thereof, or by any agency or instrumentality of such a State or political subdivision.