Crenshaw Votes to Protect Pensions for Florida's Working Families; House Approves the Pension Protection Act
Crenshaw Votes to Protect Pensions for Florida's Working Families; House Approves the Pension Protection Act
2005-12-15
(WASHINGTON) - Congressman Ander Crenshaw (R-FL), a member of the House Appropriations Committee, today voted to help provide a more secure retirement for hundreds of thousands of Floridians by voting in favor of H.R. 2830, the Pension Protection Act. The bill, which fixes antiquated pension rules to ensure employers properly fund their retirement plans, passed the house by a 294-132 vote.
"We've seen it time and time again in the news over the past several years: a company's business starts to fail and they cannot meet their obligations to their retirees," Crenshaw said. "The taxpayers then have to foot the bill and the retirees are left with significantly reduced benefits. Employers must fulfill their pension promises to their workers - and that is what this legislation dictates."
Too many companies have taken actions to dump their private pension plans on the Pension Benefit Guaranty Corporation (PBGC), the government agency that protects pensions. As a result, defined-benefit pension plans in the U.S. have become stressed. In many cases, workers do not get the benefits they were promised. Now, the PBGC is saddled with a deficit approaching $26 billion, a tab the taxpayers have to pay. Without intervention or reform, estimates show the PBGC deficit could balloon to $71 billion in 10 years.
"This bill restores accountability to companies making pension promises. Thirty-four million Americans currently receive defined-benefit pension plans and rely on these promises," Crenshaw said. "Employers will now be required to make additional contributions to cover shortfalls and increase transparency of their plans to workers. Companies that declare bankruptcy will have to pay a per-participant premium when they emerge from bankruptcy. The Pension Protection Act will prevent taxpayers from footing the bill and shore-up an outdated system that hurts hardworking Americans."
http://crenshaw.house.gov/crenshaw-web/proc/?pa=universal&sa=showPr&itemId=284