[Congressional Record Volume 151, Number 72 (Thursday, May 26, 2005)]
[Senate]
[Pages S6054-S6055]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. KENNEDY (for himself, Mr. Akaka, and Mr. Lautenberg):
  S. 1158. A bill to impose a 6-month moratorium on terminations of 
certain plans instituted under section 4042 of the Employee Retirement 
Income Security Act of 1974 in cases in which reorganization of 
contributing sponsors is sought in bankruptcy or insolvency 
proceedings; to the Committee on Health, Education, Labor, and 
Pensions.
  Mr. KENNEDY. Mr. President, the bill we are introducing today is 
urgently needed to protect the pension benefits of workers across 
America.
  A decent retirement in today's world depends on Social Security, 
private pensions, and private savings. But today's working families 
find their retirement severely threatened. President Bush wants to 
privatize Social Security. Private savings are at an all-time low, and 
now private pensions are in great jeopardy, too.
  This challenge has been brought home all too clearly by United 
Airlines' recent announcement that it intends to end its pension plans 
and turn them over to the Pension Benefit Guaranty Corporation. The 
pensions of over 120,000 workers are at stake. Over $3 billion in their 
benefits are not guaranteed by the corporation, and the future pensions 
they have been promised will be lost as well.
  These hard-working Americans include thousands of flight attendants 
like Patrice Anderson, who have made only a modest wage throughout 
their working lives and for whom ``the possible loss of hundreds of 
dollars a month in old age changes a dignified retirement into a 
subsistence-level retirement.''
  The loss is particularly painful because so many of the employees 
have accepted lower pay or given back wages and other benefits in order 
to keep their pension plans. Marilyn King of California worked for 
United for 25 years. She says: ``I used to be proud of working for 
United. Now, I am embarrassed and angry. I am angry that we

[[Page S6055]]

took 25 percent in pay cuts, that we gave other concessions; and then 
our COO and CEO get their bonuses and perks.''
  We have heard from families and workers across the country. In 
Massachusetts, Kevin Creighan and his wife Cathy Hampton in Lynn have 
spent a lifetime with United, ``working hard, earning a living, and all 
along expecting a pension.'' They hoped to retire in 7 years, with a 
combined 70 years of loyal service between them. Now, if they want the 
retirement they were promised by the United Airlines pension plan, they 
will have to work for an additional 15 years.
  George Raymond of Arizona retired at the age of 60 after 38 years. He 
writes that because of this pension termination, he will not be able to 
afford his medical bills. Richard Myer of California retired after 32 
years as a United pilot, and now he has to go back to work and sell his 
home to support his children and his elderly father-in-law.
  Americans who work hard and play by the rules should not be 
victimized by these broken promises. No wonder they feel betrayed. They 
share the view of Robert Lamica of Virginia, who says, ``I kept my 
promise to United for 36 years by working in rain, snow, heat, and 
whatever else nature would throw our way . . . My back and knees have 
been destroyed along with my ability to get another job . . . We need 
not be left on the curb just because United can.''
  These loyal men and women cannot turn back the clock and make 
different decisions. But Congress can stop that clock and reach a fair 
solution.
  This legislation we are introducing will prevent bankrupt companies 
from abandoning their pension plans for the next 6 months.
  Our action will also ease the growing threat to all defined benefit 
pension plans. The Pension Benefit Guaranty Corporation estimates that 
if it takes over the remaining airline defined benefit pension plans, 
90 percent of the claims it must cover will come from airline companies 
or steel companies, even though such plans include only 5 percent of 
the employees covered by the corporation. The legislation will buy time 
for us to develop real solutions for the serious problems of these 
ailing industries.
  I urge my colleagues to join me in support of this bill. We owe it to 
all these hard working Americans whose retirement has been put at risk.
                                 ______