Pension Protection Act of 2006

PENSION PROTECTION ACT OF 2006 -- (Senate - August 03, 2006)

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Mr. MENENDEZ. Mr. President, as we consider critical pension reform to help secure the retirement benefits of millions of our Nation's workers, I want first to commend my colleagues for all the hard work they have put into this bill and their efforts to strengthen our Nation's pension system. This bill will help ensure that companies can continue to provide pensions over the long term, it will protect the benefits of current beneficiaries, and it strengthens plans so that benefits will be there for workers for years to come.

And while I welcome this bipartisan bill and all that it will do to benefit the retirement security of workers, I would like to express my strong concern over the differential treatment of airlines in this bill. In allocating that relief, not all airlines are treated fairly, and therefore not on a level playing field. Some, such as Continental which has a significant economic and employee presence in New Jersey, are not given the same benefits and flexibility to make up the underfunding of their pension plans. What especially concerns me is that Continental went to great lengths to keep it from becoming financially unstable and to protect benefits for its employees, including voluntary wage reductions and freezing one of its pension plans. And despite those actions, because of the unequal treatment in this bill, the airline is at a competitive disadvantage, and over 10,000 workers in my state could be adversely affected.

As this legislation has been under negotiation for months and there is an urgency to pass a final bill, I do not want to hold up the pension bill from final passage. I do hope, however, that we can secure the support of our leadership and work with our colleagues to come to an agreement that would provide more equitable treatment for Continental Airlines and its employees. Retirement security is a pressing issue for many workers affected by this bill, including employees at Continental. Therefore, I urge my colleagues to work with us in addressing this issue when we return in September.

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