Airline Pensions

AIRLINE PENSIONS -- (House of Representatives - June 23, 2005)

(Mr. PRICE of Georgia asked and was given permission to address the House for 1 minute.)

Mr. PRICE of Georgia. Mr. Speaker, we do not need any more airline companies going bankrupt.

Imagine retiring with a pension only 50 or even 20 percent of what you expected. That is what is happening to thousands of airline employees.

A government bailout is not fair to taxpayers, and it will not work. What will work is industry-specific pension reform.

In the Committee on Transportation and Infrastructure hearing yesterday, we heard testimony from financial experts, the PBGC, the Pilots Association, and others. They painted a picture of a flawed current business model. In the face of high fuel costs and more retirees than workers, defined benefit plans simply do not work for many companies.

Congress can help. H.R. 2106 gives the airline carriers greater flexibility in funding their pensions. It provides more security for employees and will ensure that taxpayers will not be held liable for these underfunded pensions. A government bailout should not be a financial planning tool for the airlines.

Mr. Speaker, employees should receive the pensions they have worked for their entire lives, and taxpayers should not be left holding the bag. The Employment Pension Preservation and Tax Prepare Protection Act, H.R. 2106, is the winning formula.

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