LEGISLATION INCLUDES PENSION REFORM AND SAFEGUARDS AGAINST TAXPAYER BAILOUTS OF FAILED PENSIONS

Washington, Dec 15, 2005 - "This represents the most significant pensions reforms in over a generation, which is drawing the support of both labor groups and employers," stated Rep. Cliff Stearns.  "I believe that this bill strikes the right balance among retirees and workers with pensions, employers who offer the pensions, and taxpayers who could be liable for failed pension plans."

The House today approved H.R. 2830, the Pension Protection Act. The bill will protect the pensions of employees and retirees and prevent taxpayers from having to bail out the Pension Benefit Guaranty Corporation because some companies have failed to adequately fund their pension plans. 

Explained Stearns, "H.R. 2830 ensures employers properly and adequately fund their worker pension plans; protects taxpayers from costly bailouts of the Pension Benefit Guaranty Corporation, which has a deficit of almost $23 billion; requires greater transparency and accountability from companies to provide more information to workers about the status of their pension plans; and makes commonsense modifications to defined contribution laws to encourage greater personal savings for retirement and other needs.