Isakson Praises Senate Panel for Addressing Pension Funding Crisis
Isakson Praises Senate Panel for Addressing Pension Funding Crisis
Isakson Bill Would Protect Taxpayers, Airline Employee Pensions
U.S. Senator Johnny Isakson (R-Ga.) today praised the Senate Finance committee for holding a hearing on the growing pension funding crisis in America and urged consideration of airline pension legislation he has introduced to help protect taxpayers and airline employee pensions.
Isakson's bill - the " Employee Pension Preservation Act of 2005," which is co-sponsored by Senator John D. Rockefeller IV (D-W.Va.) - would provide airlines with new options for funding their pension plans that would help them avoid bankruptcy . The bill also would help protect American taxpayers by limiting the liability of the federal agency responsible for funding pensions when companies terminate their pension plans.
Several large U.S. airlines currently are struggling to meet required pension payments and are considering eliminating their pension plans altogether or filing for bankruptcy, which would lead to their pension plans being dissolved.
"Airline employees deserve to have their earned pensions protected, and my legislation is a common-sense, industry-specific approach," Isakson said in written testimony submitted for the hearing. "Congress must act to protect the earned pension benefits of thousands of airline workers and to maintain a healthy and viable airline industry."
The "Employee Pension Preservation Act of 2005" would allow airlines to spread their pension plan funding over a more manageable schedule of 25 years - instead of the current four years - and under more stable, long-range terms. Before an airline can use one of the options in the bill, it must have an affirmative vote of its union employees.
The bill also protects taxpayers by limiting the liability of the Pension Benefit Guarantee Corporation, which likely would have to borrow from the U.S. Treasury to meet its obligation to pay airline pensions if one or more carriers declared bankruptcy.
The bill has the support of airline employees, their collective bargaining organizations and their employers. Rep. Tom Price (R-Ga.) has introduced an identical bill in the House.
http://isakson.senate.gov/press/2005/060705pension.htm