NEWS: House Drags its Feet on Pension Reform

The House of Representatives made the next move the political chess game that is pension reform. The House has simply decided not to vote on the Senate sponsored "Pension Protection Act" (HR 2830) before the current Congressional session runs to a close. This bill garnered wide support in the Senate (approved 97-2) and has the backing of several majors airlines and a fair number of airline related unions. My aren't they a noble group...or not...because their support is based on the fact that the reform bill cuts airline some slack by giving them more time to deal with their underfunding problem. Of course, the House has another pension protection bill being introduced by the Education and Workforce Committee and the Ways and Means Committee so all this wrangling makes perfect sense...right?. Click Read More! for why Congress needs to quit playing political ping pong with this legislation.

Meanwhile, back at the ranch, the Pension Benefits Guarantee Corp (PBGC)finds itself the proud owner of defunct pension plans that are $22 billion underfunded. Two airlines, United and US Airways caused a significant chunk of that deficit and two more might like to add to the problem (Northwest and Delta). Then there's the whole matter of existing pensions across the US that are underfunded to the tune of....wait for it...$450 BILLION. Congress needs to pass something NOW that clamps down on underfunding and increases the fees paid to the PBGC in a effort to prop it up before you and I, dear tax payer, get caught holding the bag.