Senate Passes Pension Relief Bill (Defunds Pensions By $96 Billion)

[wellst0nev0ter]

WASHINGTON - The Senate, acting with rare election-year concord, passed a bill Wednesday to reduce by $96 billion the payments companies will have to make into their pension plans this year and next.

Sponsors said the measure, passed 86-9, will help preserve pension benefits for millions of workers by discouraging financially strapped companies from terminating plans as no longer affordable.

"Our pension plans are being battered by a perfect storm of declining interest rates, stock market declines and a weak economy," said Sen. Edward Kennedy, D-Mass. The bill, he said, "will help the hard-earned pensions of millions of Americans to weather this storm."

http://story.news.yahoo.com/news?tmpl=story&cid=536&e=3&u=/ap/20040128/ap_on_go_co/congress_pensions

Wow, with an "opposition party" like this, who needs Republicans? :eyes:

[banana republican]

1. The Great Depression Has Returned.......

We are all FUCKED ....

[cosmicdot]

4. except the terms "relief" and "reform" aren't on our side this time

... or so it appears ...

the Raw Deal replaces the New Deal

[wellst0nev0ter]

2. In Case You're Wondering What Really Happened To Those Pensions

Executives Get Pension Security; Plans for Workers Falter

Thursday, April 24, 2003 00:42 AM ET

A number of large companies are setting aside millions of dollars to
protect pensions of top executives, even as they forgo contributions to
financially strained pension plans for other workers, Thursday's Wall
Street Journal reported.

The issue of inequity in pension plans is heating up in the airline
industry, amid recent disclosures that AMR Corp., Delta Air Lines and UAL
Corp. had poured millions into special pension trusts for executives. That
angered workers who have seen their own pension plans ravaged by weak stock
markets and low interest rates. At AMR's American Airlines, employee
outrage over the issue is threatening delicate labor talks that are crucial
to keeping the company from filing for bankruptcy protection.

<snip>

Companies that contribute to pensions for executives -- while choosing not
to fund regular pensions -- aren't breaking any laws. Federal rules require
companies to make minimum contributions if their pension plans become
excessively underfunded. That occurs when liabilities exceed assets by too
great a margin as defined by the Internal Revenue Service. But companies
can coast for years with pensions that have just two-thirds or
three-quarters of the money they would need to pay their future
obligations.

Dead link

Ahh, the things that fuel Communist revolutions. . .

[Journeyman]

3. Wow, when's someone going to do something. . .

to help the pension fund of the company I work for --- the company I own. Oh, right. . . I'm just a citizen.

[dusty64]

5. Kennedy's support is

puzzling to say the least. Those who voted no are all repubs. I may be wrong but this seems like just another corporate giveaway.


NAYs ---9
Chafee (R-RI)
Ensign (R-NV)
Fitzgerald (R-IL)
Inhofe (R-OK)
Kyl (R-AZ)
McCain (R-AZ)
Nickles (R-OK)
Sessions (R-AL)
Thomas (R-WY


Not Voting - 5
Baucus (D-MT)
Chambliss (R-GA)
Edwards (D-NC)
Kerry (D-MA)
Lieberman (D-CT)

[porkrind]

6. Troubling

That 3 of the democratic candidates did not vote!?!

Are they not allowed a vote on this issue? Are they too busy campaigning to be bothered with their jobs? Are they unwilling to take a stand one way or the other? :wtf:

[indepat]

8. The likely result will ultimately be countless retirees not receiving

their full promised pensions: just another bit of corporate welfare in a corporatist country.

[banana republican]

10. You are *not* wrong This will make Enron Look like sunday school.

[Just Me]

13. Weren't the Repubs pushing about 3X this amount,...

,...of additional corporate welfare? Kennedy's response was a "do anything" measure that would successfully block a huge giveaway to the big corporations? Or am I completely confused?

[reprobate]

7. There is a difference between this and the great depression

The difference is that waiting at the end was FDR, who was responsible for ending the depression. I can see no one waiting to end OUR pain. Georgie has succeeded in truly destroying the country.

The only question now is which country will be our personal escape clause.

[SoCalDem]

9. Relief = defunding.. How quaint...

Someone needs to publish a pocket sized book of opposites, so the general public will know what's being done for to them :eyes:

[Gin]

11. So is the fund 96 billion short? Are the taxpayers picking up the tab

once again?

[Gin]

12. Kennedy hypes it as good and then doesn't vote for it?

Something is wrong with this picture.

[DevilsAdvocate2]

14. A little perspective

"But companies can coast for years with pensions that have just two-thirds or three-quarters of the money they would need to pay their future obligations.

Just because a pension plan does not have enough money to pay all of its future obligations does not mean it is going bankrupt or shafting the retirees. We all have future obligations. Do you have enough money in the bank to pay all of your future obligations, such as the entire amount you owe on your mortgage, all that you owe on your car, etc? And yet you don't consider yourself as in dire shape because you don't have enough money to pay all of your future obligations, do you? You'd be in excellent shape if you had 3/4 of what you owe on your mortgage in the bank.

[mbperrin]

19. Real perspective-

you do need enough income and assets to make enough to cover your future obligations,and now these companies don't have to do that.

For instance, if you "assume" you can make 15% year on year, your money will double every 4 and half years or so; if you figure your average employee will work 30 years for a pension, that is seven cycles of 4 and a half years, so you will need 1/2x2x2x2x2x2x2 of that money today to invest to be available then. (1/128 or about 8/10 of 1%).

With this relief, they don't have to have that much available.

Ask about those who have already lost their pensions if this is just a strawman issue.

[DevilsAdvocate2]

15. kick

[chelaque liberal]

16. What? Social Security AND Pension Funds?

That's one way to help the economy-starve all of the senior citizens and then they won't be draining Medicare either.

I wish I had built that little house in the country with a wood stove and a nice garden.

[shanti]

18. logan's run

anyone?

[yellowcanine]

17. They figure with Bush's "clear skies initiative"

not as many people gonna be needing those pensions anyway. Why fund pensions you aren't going to need?