[Congressional Record (Bound Edition), Volume 151 (2005), Part 9]
[Senate]
[Pages 11709-11710]
[From the U.S. Government Publishing Office, www.gpo.gov]




                            PENSION SECURITY

  Mr. REID. Mr. President, throughout this Congress, I have argued that 
the Senate ought to spend less time debating radical judges and more 
time focusing on issues that can improve the lives of working 
Americans. One such issue is the gradual erosion of retirement 
security. Instead of working to replace Social Security's guaranteed 
benefit with a risky privatization scheme, we should work to strengthen 
retirement by shoring up our pension system. In no industry is this 
looming pension crisis more acute than the airline industry. The 
Finance Committee

[[Page 11710]]

held a hearing on pension problems facing the airline industry this 
morning, and I hope that the committee will move soon on legislation to 
fix those problems.
  Last month we learned just how worrisome this issue is, as the 
Pension Benefit Guaranty Corporation and United Airlines agreed to 
terminate the four pension plans maintained by the airline as that 
company struggles to emerge from bankruptcy. At the same time, 
Northwest, Delta and American Airlines face similar pension liabilities 
and are requesting Congress' help so that they can avoid bankruptcy. To 
their credit they are fighting to preserve their workers' pensions but 
need some time to allow them to recover from the effects of the post-9/
11 travel downturn.
  While the pension funding problems facing the airline industry are 
substantial, the industry is not alone in inadequately funding their 
employee pension plans. Congress needs to carefully review the rules 
that apply to the broad spectrum of employers that offer pension plans 
to their employees. Congress needs to make sure that those rules are 
strengthened to require greater funding for the pension promises being 
made. Let me be very clear about one thing; the pension promises made 
by companies to their employees carry with them an obligation to make 
sure those promises are kept. An employer's obligation is to have 
sufficient funds set aside to meet the pension promises it has made, 
not merely to have met the minimum funding requirements of the tax code 
or ERISA.
  As Congress strengthens the pension funding rules, we also need to be 
cognizant of the potential negative consequences of these changes. 
Pension plans, like all employee benefits, are voluntarily offered by 
employers. Congress created tax and other incentives that encourage 
companies to offer pension plans because it believes these are 
important benefits for employees. Many of the administration's 
proposals go too far and will discourage companies from maintaining and 
offering these important benefits. The proposal Congress considers must 
be more balanced. We should join together to enhance retirement 
security for all Americans by strengthening Social Security, shoring up 
our pension system and encouraging more Americans to save.

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