WASHINGTON, D.C. – Senator Mikulski (D-Md.) today urged Senator Bill Frist (R-Tenn.) to bring the Pension Security and Transparency Act of 2005 to the Senate floor immediately, following his announcement that consideration will be delayed. Senator Mikulski, the senior Democrat on the Retirement Security and Aging Subcommittee of the Health, Education, Labor and Pensions (HELP) Committee, has worked over the past year to create pension reform legislation. Senator Mikulski and Senator Mike DeWine (R-Ohio) have proposed an amendment to the current legislation that protects America’s pension system.

“We owe it to American workers and American companies to get this right. I have consistently fought to reform our nation’s pension system. Yet I remain concerned about the current legislation’s ability to protect workers from losing their pensions, protect taxpayers from having to pick up the tab if companies dump their plans, and to ensure that the rules of government don’t unintentionally jeopardize jobs and pensions,” said Senator Mikulski. “I am ready to work with congressional leaders to ensure that we have a bill that protects American workers and American companies. America is counting on us. Together, we can do better.”

Specifically, Senator Mikulski is concerned about language in the current bill that uses credit ratings, instead of plan funding, to determine if a business is “at risk” and would be required to make additional and significant contributions to the plan. This move can be harmful to the companies who are already working hard to maintain their plans. Auto manufacturers and tech companies, many of whom are just now regaining their financial stability, could be among those hardest hit by this proposal.

“I understand why credit ratings are being considered, but I’m worried that their use may have the unintended consequence of encouraging businesses to drop their pension plans,” continued Senator Mikulski. “This move could have a devastating impact on the U.S. economy at this crucial time.”

Senator Mikulski and Senator DeWine’s amendment would reinsert language previously passed by the Senate HELP Committee and the House Education and Workforce Committee, which would use a more direct measure of a plan’s financial health – the plan’s funding percentage. The proposed bill, as is, already closes loopholes and includes safeguards that make the use of credit rating unnecessary.

“I know this bill is going to be a step forward in the right direction to protect our nation’s pension system. That’s why I worked so hard with my colleagues in the HELP Committee to create a bill that increases transparency and accountability,” added Senator Mikulski. “However, without consideration of this amendment, I am not confident that we are doing all we can to ensure that our workers continue to receive pension benefits and the retirement security they have worked for.”

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