Rep. Miller Applauds Passage of Pension Protection Act
Rep. Miller Applauds Passage of Pension Protection Act
Bill Calls for Reforms to Protect Workers Pensions
WASHINGTON--U.S. Representative Candice Miller today hailed the passage of the Pension Protection Act of 2005, which calls for comprehensive pension reform that will help ensure the security of workers pensions. The bill was passed today by the U.S. House of Representatives with a strong bi-partisan vote of 294 - 132.
"Workers spend an entire career building a pension and preparing for retirement. It is imperative that workers have some assurance that the pensions they earned are there when they retire," Rep. Miller said. "This is a strong piece of legislation that is absolutely necessary for the protection of our workers. I am glad that we were able to work with labor unions and large corporations alike to craft compromise legislation. In the end the bill was supported by both United Auto Workers and General Motors, as well as a variety of other business organizations and labor unions."
This broad legislation will reform a number of outdated pension laws in order to prevent employers from breaking promises regarding pensions and benefit increases. Recent pension terminations by large, high-profile corporations have underscored the urgent need for reform. The bill will require that employers make sufficient contributions to their workers pensions to meet a 100% funding target and require them to provide disclosure to workers regarding their pension plan status.
The legislation will also create incentives to promote greater personal retirement savings by encouraging automatic enrollment in defined contribution plans, requiring employers to provide access to investment advisors, and enhancing retirement savings in IRAs by increasing the annual contribution limits.
The bill would also prevent taxpayers from having to bail out the Pension Benefit Guaranty Corporation (PBGC) simply because some companies have failed to adequately fund their pension plans.
"Recent bankruptcies and pension terminations have highlighted this serious problem," Rep. Miller said. "I believe that workers deserve to have a high level of confidence that their employers will keep their pension promises, and I am glad that we have taken the steps necessary to ensure that the pensions of the workers of Michigan's 10th District are secure."
http://candicemiller.house.gov/cgi-data/press/files/186.shtml