[Congressional Record Volume 152, Number 38 (Thursday, March 30, 2006)]
[Extensions of Remarks]
[Page E465]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                  MOTION TO INSTRUCT PENSION CONFEREES

                                 ______
                                 

                          HON. BETTY McCOLLUM

                              of minnesota

                    in the house of representatives

                        Thursday, March 30, 2006

  Ms. McCOLLUM of Minnesota. Mr. Speaker, we need common sense, 
bipartisan legislation to protect pension benefits and to honor the 
promise of pensions.
  I rise to support this motion to ensure the Senate provisions are 
included in the final Pension bill--especially the provision that 
ensures airlines like American, Continental, Delta, and Northwest are 
not forced to terminate pension plans. The Senate provision would 
provide the critical time needed to fund pension plans promised to 
employees.
  No such provision exists in the House bill. Airlines were promised, 
in exchange for their support of the House Pension bill, that House 
leadership would work with them in conference to obtain the relief they 
wanted--though Republican leadership declined to include their 
provisions in the House bill. The Bush administration opposes the 
airline provisions.
  We must help airlines avoid the termination of their pension plans. 
Timing is of the essence. Two of the airlines that would benefit from 
this provision are currently in bankruptcy and could terminate their 
pension plans. And, two others could take advantage of this relief.
  In September 2005, Northwest Airlines filed for bankruptcy after 
losing more than $4 billion since 2001. Northwest's pension plans are 
underfunded by $3.8 billion. Without airline relief provisions, 
Northwest would be required to pay $3.3 billion in pension funding 
obligations by 2007 and would likely need to abandon and turn over its 
pension plans to the Pension Benefit Guaranty Corporation. In January 
2006, the pilots union agreed with Northwest to freeze the pilot 
pension plan and replace it with a defined contribution plan. I support 
the decision made by Northwest and their pilots.
  Labor, employees, and airline management strongly support an airlines 
provision in the Pension bill.
  Keep the airlines flying and employees working. Support this motion.

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