Pension Overhaul Bill Sent to President

[Omaha Steve]

Full story: http://apnews.excite.com/article/20060804/D8J9I9K80.html

Pension Overhaul Bill Sent to President
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Aug 4, 6:42 AM (ET)

By JIM ABRAMS

WASHINGTON (AP) - Congress passed major pension legislation designed to assure American workers, including millions of baby boomers nearing the end of their working careers, that the pensions they have been promised will be there when they retire.

The Senate, in its last vote before adjourning for a four-week summer break, approved the 900-page bill that compels employers with defined-benefit pension plans to meet their funding obligations and seeks to prevent companies from terminating plans and shifting the financial burden to the taxpayer. The House passed the bill last week.

The 93-5 Senate vote late Thursday on the pension bill came shortly after the Senate fell four votes short of the 60 needed to advance a Republican-crafted package that combined an estate tax cut with a federal minimum wage increase.

Republican leaders, unsuccessful earlier this year in moving an estate tax cut through the Senate, tried to attract Democratic votes by linking it to a package of popular middle-class tax breaks and the offer to raise the minimum wage from $5.15 to $7.25 an hour over three years.

Democrats, backed by unions pushing for what would be the first increase in the minimum wage in nine years, overwhelmingly rejected the deal.

Votes on the pension bill and the estate tax package became possible after leaders from the two parties agreed to put off until September final action on a spending bill for the military.

During three days of debate, senators increased the size of the defense package to almost $469 billion with the addition of $13 billion to supplement the $50 billion for operations in Iraq and Afghanistan and $1.8 billion to build 370 miles of triple-layer fencing along the border with Mexico.

The pension bill now goes to President Bush for his expected signature and gives lawmakers returning to their states and districts a major achievement in an election-year session characterized more by partisan politics than legislative accomplishments.

"This bill is the most important action to safeguard the retirement of hardworking Americans in a generation," Sen. Edward Kennedy, D-Mass., said.

[ananda]

1. How well does this pension bill..

.. safeguard pensions?

Is it a good bill?

[Omaha Steve]

3. NY Times opinion on the pension bill

http://www.nytimes.com/2006/08/04/washington/04cong.html?_r=1&ref=washington&oref=slogin



The pension legislation, approved on a 93-to-5 vote, is intended to shore up the federal insurance system and better secure the retirement benefits of millions of American workers by requiring some companies to increase their contributions to shaky plans. The complex bill has been years in the making.

''Too many workers have seen their pensions fail in recent years,'' said Senator Edward M. Kennedy, Democrat of Massachusetts, an author of the measure.

The bill requires companies with pension funds to close any shortfalls within seven years. It also has tests that companies would have to use to determine whether their pension plans posed a risk to the federal insurance system. Companies with such risky plans would then have to calculate how much it would cost if all qualifying employees were to take early retirement immediately and then put that amount into their pension funds.

The bill also closes loopholes that made it easy for companies to avoid paying their full premiums to the pension insurance system.

The pension and tax votes concluded a complicated legislative chess match that began last week when Republican leaders decided to remove the package of tax breaks from the pension legislation and add them to the bill with the wage increase and estate tax change. That moved rankled some Republicans, who warned that the strategy was a long shot.

''The bottom line is, we bet on the wrong horses,'' said Senator Charles E. Grassley, Republican of Iowa and chairman of the Finance Committee.


Senator Kennedy and labor both say we needed this. I think that is a good yard stick by itself.

[Robbien]

4. The Government Pension agency says this bill will weaken Pensions

On top of those changes, companies also persuaded lawmakers to add dozens of specific measures, including a multibillion-dollar escape clause for the nation's airlines and a special exemption for the makers of Smithfield Farms hams.

As a result, the bill now being completed in a House-Senate conference committee, rather than strengthening the pension system, would actually weaken it, according to a little-noticed analysis by the government's pension agency. The agency's report projects that the House and Senate bills would lower corporate contributions to the already underfinanced pension system by $140 billion to $160 billion in the next three years.

http://www.mydd.com/story/2006/8/4/03423/38840

[Omaha Steve]

5. Teamsters (& USW) Oppose Pensions Bill, Say It Allows Vested Benefits Cuts

http://www.laborradio.org/node/3877



Teamsters Oppose Pensions Bill, Say It Allows Vested Benefits Cuts - 08/04/06

By Doug Cunningham

The Teamsters oppose the pensions overhaul bill in the Senate because in some cases it allows companies to reduce vested benefits – deferred compensation pension money earned by workers. Teamsters Legislative Director Fred McLuckie.

: “And these are benefits that our members have earned and are expecting to receive when they retire.”

The United Steelworkers are joining the Teamsters in opposition to the pensions bill. McLuckie says it’s likely to pass, but…

: “This fight won’t end. We will be fighting at the bargaining table as best we can to make sure that our pensions are secure for our members.”

[rodeodance]

2. i do not know. has lots of support-form the Dems also.