[Congressional Record (Bound Edition), Volume 152 (2006), Part 6]
[Extensions of Remarks]
[Page 8139]
[From the U.S. Government Publishing Office, www.gpo.gov]




    INTRODUCTION OF THE ``DEPARTMENT OF ENERGY CONTRACTOR EMPLOYEE 
                   EQUITABLE TREATMENT ACT OF 2006''

                                 ______
                                 

                           HON. GEORGE MILLER

                             of california

                    in the house of representatives

                         Thursday, May 11, 2006

  Mr. GEORGE MILLER of California. Mr. Speaker, the Department of 
Energy, DOE, recently announced that it will no longer reimburse its 
contractors for the cost of providing defined benefit pensions for new 
employees. Beginning in March 2007, contractors will only be reimbursed 
for defined contribution, 401 (k)-type plans. Furthermore, DOE will 
only reimburse for a ``market-based medical benefit plan,'' thus 
encouraging contractors who provide comprehensive medical coverage for 
their employees to drop or reduce that coverage. In short, the DOE's 
action is a direct threat to workers' retirement and health care 
security.
  That is why I rise today to introduce legislation to put an immediate 
halt to this policy. At a time when even well-funded companies are 
choosing to terminate their pension plans and Congress is struggling to 
find ways to encourage employers to provide meaningful health and 
retirement benefits to workers, penalizing federal contractors for 
offering guaranteed retirement benefits and quality health insurance is 
hypocritical and counterproductive. This bill, ``the Department of 
Energy Contractor Employee Equitable Treatment Act of 2006,'' will 
simply prevent DOE from using its funds to implement this wrong-headed 
proposal.
  According to a Department press release, the purpose of the new 
policy is ``based on sound business practices and market-based 
benchmarks for cost management.'' However, at a speech at the National 
Press Club in January of last year, Labor Secretary Elaine Chao claimed 
that ``President Bush has made retirement security one of the highest 
priorities of his second term. A critical component of his agenda is 
ensuring that the defined benefit pension system is viable and that the 
promises made to the workers enrolled in these plans are kept.'' This 
new DOE policy, particularly after the President's effort to privatize 
Social Security, contradicts that statement and reveals a true agenda 
of undermining guaranteed retirement benefits.
  The DOE rationale--that defined benefit pension plans are too 
volatile--is particularly ironic given the pressure the Bush 
Administration is pushing for a House-Senate pension conference bill to 
change pension law in ways that will make the cost of a pension plan 
higher and less predictable.
  Moreover, by tying reimbursement to a ``market based medical benefit 
plan,'' the DOE encourages contractors who provide comprehensive 
medical coverage to reduce such coverage and to further shift health 
care cost burdens onto employees, rather than addressing rising health 
care costs. The DOE directive requires all contractors to make clear 
that they can ``unilaterally change, suspend, or terminate any medical 
plan, coverage or contribution at any time.'' It further limits the 
conditions under which retirees may receive retiree health benefit 
coverage. Encouraging the loss or reduction of health benefits of any 
workers or retirees, including workers and retirees serving our country 
at nuclear facilities, is just plain wrong.
  I encourage my colleagues to join me in support of this legislation.

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