Is Your Pension Protected?
Our private pension system is in crisis and House Republicans are advancing legislation that fails to protect millions of hardworking Americans. HR 2830 represents a missed opportunity to stabilize the system. Millions of workers are depending on employer-provided benefits for their retirement security. Congress must protect this promise.
The defined benefit pension system, which protects the retirement security of more than 44 million workers, retirees, and their families, is at a critical moment. The number of defined benefit plans has declined from 100,000 in 1985 to 32,000 in 2004. The number of workers covered has dropped from 40 million to 20 million and an additional 20 million retirees depend on defined benefit plans.
Neither the proponents of the bill nor the Pension Benefit Guaranty Corporation (PBGC) can provide any information on the effect the legislation would have on corporate sponsors, employees, or the PBGC. Congress has a responsibility to know the consequences of its actions on the retirement security of the nation.
HR 2830, sponsored by 17 Republicans, is flawed and must be given full and open debate.
- Single employer funding reform impacts are unknown
- Contains no provisions to prevent or encourage alternatives to termination
- Does not provide fair treatment of workers and executives
- Multi employer funding reforms are needed
- Reduces older workers’ pensions under cash balance plans
- Encourages conflicted pension investment advice
Call your elected representative and ask them not to support this legislation until these issues are addressed.
Source: The House Committee on Education and the Workforce Democratic Staff, http://edworkforce.house.gov/democrats/welcome.shtml