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Pension Protection Act of 2005

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Sep 29, 2005
Pensions in the US could possibly soon end. The Government has legislation entitled "The Pension Protection Act of 2005" that would give Northwest Airlines and others more time to fully fund its pension plans. In turn it would also unfairly benefit companies that file for Chapter 11 bankruptcy, as Northwest Airlines and Delta Air Lines did last month.

HR 2830 and the Senate version S 1783 would jack up companies' pension insurance premiums to the PBGC by 60%. They all set a new, more conservative rule for companies' calculating what their pension plan assets are worth for the future. (For example, bankrupt Delta Airlines says its pension plans are $5.2 billion underfunded; the PBGC says they're $10.6 billion underfunded, a huge difference.) They all require companies to have their plans fully (100%) funded within 3-5 years, depending on the type of plan.
The Senate version makes an exception for airlines, giving them 14 years to get 100% funded by the new rules. The House committee may accept such an airline exception. But two major airlines already have dumped their pension plans on the PBGC.

The Pension Benefit Guaranty Corporation (PBGC), which insures pensions up to a limit, had an end-2004 deficit of $23.3 billion, due largely to the bankruptcies of the steel sector, United Airlines, and U.S. Airways.

Delta Airlines had already hinted at ending it's pension plan and say it's pension plans are already $5.2 billion underfunded.

The Government cannot be held accountable for the mismanagement of the Airline industry and greed of others looking to find a loop hole to increase revenue at the expense of the American worker.

Please reference this article:
"All these provisions are what the Cheney-Bush White House announced it wanted in "pension reform," in March........ This legislation will be a "pension killer" for large companies "

You get what you vote for.

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