OFFICIALS LEGISLATION INTEREST GROUPS PUBLIC STATEMENTS COMMITTEES VETOES

Departments of Labor, Health and Human Services, and Education, and Related Agencies Appropriations Act, 2006

Date: June 24, 2005
Location: Washington, DC
Issues: Labor Unions Health and Health Care Education


DEPARTMENTS OF LABOR, HEALTH AND HUMAN SERVICES, AND EDUCATION, AND RELATED AGENCIES APPROPRIATIONS ACT, 2006 -- (House of Representatives - June 24, 2005)

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Ms. SCHAKOWSKY. Mr. Chairman, I rise today, with the gentleman from California (Mr. George Miller) and the gentleman from New York (Mr. Crowley), to offer an amendment that would protect the retirement security of dedicated United Airlines employees and retirees who support, and I want to underscore that, who support our amendment.

Our amendment would stop the Pension Benefit Guaranty Corporation from taking over United's four pension plans in one fell swoop. Our amendment would give Congress a chance to work out a better solution than pension termination.

I urge my colleagues to support this amendment because the threat to United's employees is real. This is not a straight hand-off from United to the PBGC. Although United's pension liability is $9.8 billion, the PBGC is only assuming $6.6 billion of the debt to United workers. The takeover of the plans will result in pension benefit cuts averaging 25 to 50 percent, a loss of $3.2 billion, for men and women who have worked for years with the promise of a secure pension. And it is on top of the $3 billion in concessions United employees already made.

We are on the cusp of a pension crisis in this country. The PBGC, without United, has a $23 billion deficit, and other companies are waiting in line to dump their pension benefits.

I urge my colleagues to support this measure.

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