Big Slick
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Bush says companies must keep pension promises
Fri Mar 10, 2006 11:56 AM ET
WASHINGTON, March 10 (Reuters) - President George W. Bush said on Friday that companies, even ones that are struggling, must keep their pensions properly funded to ensure that workers receive promised benefits.
In comments to a newspaper association conference, Bush referred to companies that have already or may terminate their pension plans to cut costs, mainly during bankruptcy restructuring.
"People have asked whether or not private companies that have made pension promises should be relieved of their responsibility. And my answer is, if you make a promise, you got to keep it," Bush said.
"I think that's a very important principle to state loud and clear," he added
Bush's remarks were a reminder to congressional negotiators just beginning work on a compromise pension reform legislation that the White House wants a tougher bill than what lawmakers are considering.
The Bush administration has raised the prospect of a veto if its expectations are not met.
All sides agree that corporate funding rules must be tightened and that the health of the deficit-ridden federal pension insurance program shored up.
But there are differences. For instance, the administration opposes a provision in a reform bill approved by the Senate that would allow struggling airlines -- like bankrupt Delta Air Lines and Northwest Airlines -- to stretch their required contribution to pension plans over a longer period of time.
Bush also signaled his reluctance to support any large-scale government help for financially struggling U.S. auto companies at the expense of foreign competitors that have made substantial gains in market share.
He said fairer trade policies by other nations would be the best medicine for auto company woes. "I'm confident that if the playing field is level that we can compete with anybody," Bush said.
Fri Mar 10, 2006 11:56 AM ET
WASHINGTON, March 10 (Reuters) - President George W. Bush said on Friday that companies, even ones that are struggling, must keep their pensions properly funded to ensure that workers receive promised benefits.
In comments to a newspaper association conference, Bush referred to companies that have already or may terminate their pension plans to cut costs, mainly during bankruptcy restructuring.
"People have asked whether or not private companies that have made pension promises should be relieved of their responsibility. And my answer is, if you make a promise, you got to keep it," Bush said.
"I think that's a very important principle to state loud and clear," he added
Bush's remarks were a reminder to congressional negotiators just beginning work on a compromise pension reform legislation that the White House wants a tougher bill than what lawmakers are considering.
The Bush administration has raised the prospect of a veto if its expectations are not met.
All sides agree that corporate funding rules must be tightened and that the health of the deficit-ridden federal pension insurance program shored up.
But there are differences. For instance, the administration opposes a provision in a reform bill approved by the Senate that would allow struggling airlines -- like bankrupt Delta Air Lines and Northwest Airlines -- to stretch their required contribution to pension plans over a longer period of time.
Bush also signaled his reluctance to support any large-scale government help for financially struggling U.S. auto companies at the expense of foreign competitors that have made substantial gains in market share.
He said fairer trade policies by other nations would be the best medicine for auto company woes. "I'm confident that if the playing field is level that we can compete with anybody," Bush said.
