Statement by Education & the Workforce Committee John Boehner on Court Decision Allowing United Airlines to Terminate its Defined Benefit Plans
May 11, 2005
WASHINGTON, D.C. -- Education & the Workforce Committee Chairman John Boehner (R-OH) today issued the following statement on the bankruptcy court decision allowing United Airlines to terminate its pension plans:
"This decision demonstrates the failure of outdated pension laws to protect the interests of workers and retirees and underscores the need for comprehensive pension reforms. The situation with United highlights the uncertainty many employees and employers face in today's defined benefit pension system. The comprehensive pension reform bill we are working on will give all employers in the defined benefit system greater stability and predictability in making their pension contributions, reduce pension funding volatility, and provide employers with incentives to better fund their plans."
Boehner and Employer-Employee Relations Subcommittee Chairman Sam Johnson (R-TX) are working with Ways & Means Committee Chairman Bill Thomas (R-CA) on comprehensive legislation to reform and strengthen the defined benefit pension system. The bill is expected to be ready for introduction in the coming weeks.