[Congressional Record Volume 153, Number 71 (Wednesday, May 2, 2007)]
[Senate]
[Page S5507]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. AKAKA (for himself, Mr. Kennedy, Mr. Inouye, Mr. Obama, 
        Mr. Durbin, Mr. Harkin, Mr. Salazar, and Mr. Isakson):
  S. 1270. A bill to amend title IV of the Employee Retirement Income 
Security Act of 1974 to require the Pension Benefit Guaranty 
Corporation, in the case of airline pilots who are required by 
regulation to retire at age 60, to compute the actuarial value of 
monthly benefits in the form of a life annuity commencing at age 60; to 
the Committee on Health, Education, Labor, and Pensions.
  Mr. AKAKA. Mr. President, today I am introducing the Pension Benefit 
Guaranty Corporation Pilots Equitable Treatment Act to ensure fair 
treatment of commercial airline pilot retirees. I thank my cosponsors, 
Senators Kennedy, Inouye, Obama, Durbin, Harkin, and Salazar. I also 
thank Representative George Miller for introducing the companion 
legislation in the other body.
  My bill corrects an injustice imposed on pilots whose pensions have 
been terminated and handed over to the Pension Benefit Guaranty 
Corporation, PBGC. This bill will lower the age requirement to receive 
the maximum pension benefits allowed by the PBGC to age 60 for pilots, 
who are mandated by the Federal Aviation Administration, FAA, to retire 
before age 65. With the airline industry experiencing severe financial 
distress, we need to enact this legislation to assist pilots whose 
companies have been or will be unable to continue their defined benefit 
pension plans. This bill will require the PBGC to take into account the 
fact that the pilots are required to retire at the age of 60 when 
calculating their benefits.
  The FAA requires commercial aviation pilots to retire when they reach 
the age of 60. Pilots are therefore denied the maximum pension benefit 
administered by the PBGC because they are required to retire before the 
age of 65. Herein lies the problem. If pilots want to work beyond the 
age of 60, they have to request a waiver from the FAA. It is my 
understanding that the FAA has only granted these waivers for pilots 
working for foreign airlines that fly to and from the United States. 
Therefore, retired pilots whose pensions are administered by the PBGC 
do not receive the maximum pension guarantee because they are forced to 
retire at age 60.
  For plans terminated in 2005, the maximum benefit for someone that 
retires at 65 is $45,614 a year. For those who retire at 60, the 
maximum is $29,649. This significant reduction in benefits puts pilots 
in a difficult position. Their pensions have been reduced significantly 
and they are prohibited from reentering their profession due to the 
mandatory retirement age. They are unable to go back to their former 
jobs. My legislation ensures that pilots are able to obtain the maximum 
PBGC benefit without being unfairly penalized for having to retire at 
60. We must pass this bill to provide some relief for United Airlines, 
Aloha Airlines, US Airways, Delta, TWA, and other pilots who have had 
their pensions terminated and taken over by the PBGC and suffer from 
this wrongly imposed penalty.
  In the previous Congress, this legislation was included in the 
Senate-passed version of the Pension Security and Transparency Act of 
2005. However, this provision was not included in the conference 
report. I urge my colleagues to support this bill so that we can 
finally provide some relief for our pilots who already have suffered 
financially due to the termination of their pension plans.
  Mr. President, I ask unanimous consent that the text of the bill be 
printed in the Record.
  There being no objection, the text of the bill was ordered to be 
printed in the Record, as follows:

                                S. 1270

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Pension Benefit Guaranty 
     Corporation Pilots Equitable Treatment Act''.

     SEC. 2. AGE REQUIREMENT FOR AIRLINE PILOTS.

       (a) Single-Employer Plan Benefits Guaranteed.--Section 
     4022(b)(3) of the Employee Retirement Income Security Act of 
     1974 (29 U.S.C. 1322(b)(3)) is amended by inserting at the 
     end the following: ``If, at the time of termination of a plan 
     under this title, regulations prescribed by the Federal 
     Aviation Administration require an individual to separate 
     from service as a commercial airline pilot after attaining 
     any age before age 65, this paragraph shall be applied to an 
     individual who is a participant in the plan by reason of such 
     service by substituting such age for age 65.''.
       (b) Aggregate Limit on Benefits Guaranteed; Criteria 
     Applicable.--Section 4022B(a) of the Employee Retirement 
     Income Security Act of 1974 (29 U.S.C. 1322b(a)) is amended 
     by adding at the end the following: ``If, at the time of 
     termination of a plan under this title, regulations 
     prescribed by the Federal Aviation Administration require an 
     individual to separate from service as a commercial airline 
     pilot after attaining any age before age 65, this subsection 
     shall be applied to an individual who is a participant in the 
     plan by reason of such service by substituting such age for 
     age 65.''.

     SEC. 3. EFFECTIVE DATE.

       The amendments made by this Act shall apply to benefits 
     payable on or after the date of enactment of this Act.
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