Senate Pension Reform Legislation

[islandhopper]

This needs to still pass the House, & then GW Bush has vowed to VETO it.

http://www.alpa.org/DesktopModules/ALPA_Documents/ALPA_DocumentsView.aspx?itemid=2113&ModuleId=1458&Tabid=73

Release #05.052
November 16, 2005
Senate Pension Reform Legislation: One Step Closer to Victory for Airline Pilots
WASHINGTON, D.C. --- Capt. Duane E. Woerth, president of the Air Line Pilots Association (ALPA), issued the following statement today after the U.S. Senate brought the “Pension Security and Transparency Act of 2005” (S.1783) to the floor by unanimous consent and approved the measure by a 97-2 vote. Before the final passage, the Senate adopted, by an overwhelming voice vote, an amendment offered by Senator Johnny Isakson (R-GA), Senator Jay Rockefeller (D-WV), and Senator Trent Lott (R-MS) that provides a 20-year amortization period for unfunded pension plan liabilities. In addition, the Senate adopted by a 58-41 vote an amendment offered by Senator Daniel Akaka (D-HI) and Senator Arlen Specter (R-PA) that would apply the PBGC’s normal retirement age guarantee limit to pilots at their mandatory retirement age of 60.

“The Air Line Pilots Association hails the Senate’s passage of the ‘Pension Security and Transparency Act of 2005’ as a major milestone for airline pilots. This legislation will make it possible for several airlines to live up to their promise of a secure retirement pension to tens of thousands of airline employees, and will restore much of what thousands of other pilots have lost in terminated pensions. “We applaud Senators Isakson, Rockefeller, Lott, Akaka, and Specter for their tremendous leadership on behalf of airline employees across the nation. Congress recognized the uniqueness of the airline industry in the Isakson-Rockefeller-Lott amendment and the uniqueness of airline pilots in the Akaka-Specter amendment.

“By extending the amortization period to 20 years, the Senate has helped to prevent existing defined-benefit plans from being terminated and will help ensure a secure retirement for airline employees.

“We urge the U.S. House to follow the Senate’s lead and act swiftly on HR 2830 to facilitate a conference between the House and Senate before the Congress adjourns at the end of the year. Thousands of faithful employees’ futures are hanging in the balance.”
​

 

[chase]

Does anyone know the difference between payout at age 60 vs. 65? I recall somewhere the max at age 60 was around $28k & the max at 64 was around $45k...but my gray matter is shot at this time of night so if someone has the correct answer please post...thanks in advance.

 

[islandhopper]

Does anyone know the difference between payout at age 60 vs. 65? I recall somewhere the max at age 60 was around $28k & the max at 64 was around $45k...but my gray matter is shot at this time of night so if someone has the correct answer please post...thanks in advance.

I dont know, but this is HUGE for Aloha and Delta. We hope the House also passes but GWB is threatening to VETO... What is his problem with this bill? Can somebody explain to me?

 

[80drvr]

This needs to still pass the House, & then GW Bush has vowed to VETO it.

I say the chances of Bush vetoing this bill are zero. He hasn't vetoed a single bill since he took office and there has been plenty of garbage that warranted it. This passed 97-2. With his approval rating in the gutter, I'd like to think GW isn't stupid enough to use his first and only veto on a bill with incredible political and populist suport.

 

[jtf]

So if the bill passes, could NW, Delta, and Aloha all still ditch their pensions since they are already in bankruptcy? It seems to me that all 3 are pretty hellbent on offing their respective pension plans and will do whatever they can to do so.

 

[G4G5]

Great, now they have 20 years not to fund their pensions.

 

[islandhopper]

Great, now they have 20 years not to fund their pensions.

The way I understand it, historically the pensions fund themselves. Most pensions were anywhere from 105 to 120% funded on average. The last few years has been the "perfect storm" for pensions. Dot-com crash, low interst rates, airlines in BK, high fuel etc. In a few years the pensions could be funding themselves again, and even making up for the years lost.