Representative George Miller (D-CA), Senior Democrat, US House of Representatives, Education and Workforce Committee, introduced legislation which places the retirement security of workers and executives on more equal footing. The Pension Fairness Act of 2004, H.R. 5292, would prohibit a company from paying or promising executive deferred compensation for directors and officers for a five-year period, in the event that a company's defined pension plans are terminated in connection with bankruptcy reorganization or converted to a cash balance plan.
Under the Pension Fairness Act, if workers' plans are terminated or converted into a cash balance plan, the company's executives and directors may not enhance their own deferred compensation deals for five years. If any new deals or packages for executives or directors were cut the year prior to an underfunded termination, payments to those executives or directors would also be suspended for five years.
"This is about fairness and common sense" Rep. George Miller stated when he introduced the legislation. "Employees cannot be asked to absorb the full brunt of bankruptcy by having their pension plans terminated and dropped on the Federal Government. Executives should share in that pain."
The bill would create more of a level playing field in the corporate retirement world, where an increasing number of large companies are dumping their underfunded multibillion dollar pension plans onto the taxpayer-backed Pension Benefit Guaranty Corporation (PBGC). When companies terminate their underfunded pension plans, the federally established PBGC takes over those liabilities.
Please take action today! Call your US Representative and urge him/her to cosponsor Representative George Miller's bill, H.R. 5292, The Pension Fairness Act of 2004.
To reach your Representative's office in Washington, DC, you may call the US Capitol Switchboard at 202-224-3121. Non-U.S. citizens should contact Speaker of the House, Dennis Hastert (R-IL) 202-225-2976.
Under the Pension Fairness Act, if workers' plans are terminated or converted into a cash balance plan, the company's executives and directors may not enhance their own deferred compensation deals for five years. If any new deals or packages for executives or directors were cut the year prior to an underfunded termination, payments to those executives or directors would also be suspended for five years.
"This is about fairness and common sense" Rep. George Miller stated when he introduced the legislation. "Employees cannot be asked to absorb the full brunt of bankruptcy by having their pension plans terminated and dropped on the Federal Government. Executives should share in that pain."
The bill would create more of a level playing field in the corporate retirement world, where an increasing number of large companies are dumping their underfunded multibillion dollar pension plans onto the taxpayer-backed Pension Benefit Guaranty Corporation (PBGC). When companies terminate their underfunded pension plans, the federally established PBGC takes over those liabilities.
Please take action today! Call your US Representative and urge him/her to cosponsor Representative George Miller's bill, H.R. 5292, The Pension Fairness Act of 2004.
To reach your Representative's office in Washington, DC, you may call the US Capitol Switchboard at 202-224-3121. Non-U.S. citizens should contact Speaker of the House, Dennis Hastert (R-IL) 202-225-2976.
