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PENSION & RETIREMENT SECURITY FOR U.S. WORKERS
H.R. 1000, Pension Security Act
H.R. 3108, Pension Funding Equity Act (Signed into law on April 12, 2004)

Sponsor: Committee on Education & the Workforce Chairman John A. Boehner (R-OH)

Chairmen Boehner and Employer-Employee Relations Subcommittee Chairman Sam Johnson (R-TX) have made reforming and strengthening the defined benefit pension system a key congressional priority to strengthen the retirement security of all Americans.  Over the past decade, the number of employers offering defined benefit pension plans has declined significantly.  The goal of this initiative is to examine how Congress can give American workers as many retirement security options as possible, and encourage employers to offer both 401(k) accounts and defined benefit plans to their workers.

The Committee has taken a two-pronged approach to address defined benefit reform on a short- and long-term basis.  On April 12, 2004, President Bush signed into law the Pension Funding Equity Act conference report (H.R. 3108) after months of work by the House and Senate. The measure replaces the current 30-year Treasury interest rate with a conservative corporate bond rate for two years through 2005, providing short-term help while Congress carefully considers more permanent solutions to the underfunding problems that are putting the working families’ pension benefits at risk.  

 

As for long-term reforms, the Committee has held eight hearings already and Boehner recently outlined six key principles that should guide congressional efforts to reform and strengthen the defined benefit pension system.  Boehner, along with Johnson and Ways & Means Chairman Bill Thomas, are putting together a comprehensive legislative package to reform and strengthen the defined benefit system and put the PBGC on sound financial footing so that it can protect the pension benefits of American workers.

 

As for defined contribution reforms, the House has responded to calls from President Bush to enact important new safeguards to protect the pensions of millions of American workers in the wake of the Enron collapse.   On April 11, 2002, the Republican-led House acted decisively by passing passed the Pension Security Act by a strong bipartisan margin of 255-163, which included the support of 46 Democrats.  Unfortunately, the Democrat-controlled Senate refused to schedule a vote on the Pension Security Act or any other comprehensive pension reform measure before adjournment.

 

Republicans responded as well in the 108th Congress by again passing the Pension Security Act (H.R. 1000), which would give workers unprecedented new retirement security protections that would have helped protect thousands of Enron and WorldCom employees who lost their savings during their companies’ collapses if the bill had been law.  On May 14, 2003, the House approved the bill by a bipartisan vote of 271-157, including 49 Democrats.  The bill would give workers new freedoms to diversify their retirement savings within three years; expand worker access to high quality investment advice; empower workers to hold company insiders accountable for abuses; and give workers better information about their pensions.

Issue Summary: Pension and Retirement Security for U.S. Workers 

Conference Agreement on H.R. 3108, the Pension Funding Equity Act

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Press Statements:

• Statement by House Education & the Workforce Committee Chairman John Boehner (R-OH) on PBGC Assuming Responsibility for UAL Pilots’ Pension Plan - December 30, 2004

• Record PBGC Deficit Underscores Need for Comprehensive Pension Reform, Long-Term Solutions to Protect Worker Benefits - November 15, 2004

• Boehner Highlights New DOL Data on the Bush Administration’s Enforcement of Worker Pension Laws - October 21, 2004

• Speech on Airline Pension Troubles, Six Principles to Reform & Strengthen the Defined Benefit Pension System by the Honorable John Boehner (R-OH), Chairman, House Education & the Workforce Committee - September 14, 2004

• Statement by House Education & the Workforce Committee Chairman John Boehner (R-OH) on United Airlines Pension Announcement - August 20, 2004

• Commentary by Chairman John Boehner on United Airlines & the Need for Pension Reform - August 5, 2004

• Witnesses Express Concern about the Future of the Defined Benefit System, Warn Loss of Cash Balance Plans Would Undermine Worker Retirement Security - July 7, 2004

• Boehner, Johnson Plan to Move Forward with Solutions to Address Cash Balance Pension Plans - June 15, 2004

• Boehner, Johnson Announce Plans to Hold a Hearing on Cash Balance Pension Plans - May 12, 2004

• Subcommittee Hears Options for Long-Term, Comprehensive Reforms to Strengthen Defined Benefit System, Worker Retirement Security - April 29, 2004

• Workforce Committee Republicans Applaud President's Signing of Pension Bill to Help Workers, Employers & the Economy - April 12, 2004

• With House and Senate Passage Complete, Bipartisan Pension Bill Now Ready for President Bush’s Signature - April 8, 2004

• House Republicans Hail Passage of Bipartisan Pension Agreement for Workers and the Economy - April 2, 2004

• Short-Term Pension Bill Approved by Conferees; Proposal Ready for House Floor Action - April 1, 2004

• Opening Statement of the Honorable John Boehner (R-OH) Chairman, House Education & the Workforce Committee House-Senate Conference Meeting on H.R. 3108, the Pension Funding Equity Act - April 1, 2004

• Long-Term Reforms Needed to Strengthen the Multiemployer Pension System, Witnesses Say - March 18, 2004

• Statements by Chairman Boehner, Reps. Johnson, McKeon, & Tiberi from the First Formal Pension Conference Meeting - March 9, 2004

• Conferees Set for Pension Reform Bill; Conference Negotiations Ready to Begin - March 4, 2004

• Witnesses Cite Importance of Retirement Planning, Praise Committee Initiative to Reform and Strengthen Defined Benefit Pension System - February 25, 2004

• Boehner, Johnson Blast Daschle for Holding Defined Benefit Pension Reform Hostage - February 4, 2004

• Statement by Education & the Workforce Committee Chairman John Boehner on Strengthening Worker Protections for Cash Balance Pension Plans - February 2, 2004

• Boehner: Congress Should Complete Pension Work on Behalf of Workers and Employers - January 28, 2004

• Largest PBGC Deficit Ever Highlights Need for Defined Benefit Pension Reform, Long-Term Solutions for Workers and Employers - January 15, 2004

• Statement by Education & the Workforce Committee Chairman John Boehner (R-OH) on 30-Year Treasury Rate Pension Fix - December 10, 2003

• Statement by Education & the Workforce Committee Chairman John Boehner (R-OH) on 30-Year Treasury Rate Pension Fix - December 8, 2003

• Statement by Education & the Workforce Committee Chairman John Boehner (R-OH) on House Passage of Pension Fix to Replace 30-Year Treasury Rate - November 20, 2003

• Witnesses Question Effectiveness of Current Pension Funding Rules, their Impact on Defined Benefit Pension System and Worker Retirement Security - October 29, 2003

• House Overwhelmingly Passes Bipartisan Bill to Replace 30-Year Treasury Interest Rate, Protect the Retirement Benefits of Working Families - October 8, 2003

• Boehner Introduces Bill to Address 30-Year Treasury Interest Rate, Enhance Retirement Security for Workers in Defined Benefit Pension Plans - September 17, 2003

• Committee Seeks Ways to Bolster Pension Benefit Guaranty Corporation, Prevent Taxpayer-Funded Bailout - September 4, 2003

• Boehner, Johnson Announce PBGC Hearing as the Agency is Designated “High-Risk” by GAO - July 23, 2003

• Boehner Praises Cooperation on Ways & Means Pension Substitute, Notes Ed & Workforce Committee Will Not Hold Separate Vote - July 17, 2003

• Witnesses Testify on Bush Administration 30-Year Interest Rate Plan, Strengthening Defined Benefit Pension Plans - July 15, 2003

• Boehner, Johnson Comment on Bush Administration 30-Year Interest Rate Proposal to Strengthen Defined Benefit Pension Plans - July 7, 2003

• Boehner, Johnson Praise Labor Department Enron Suit on Behalf of Enron Employees - June 26, 2003

• Witnesses Cite Burdensome Rules and Regulations as Causes for Decline in Defined Benefit Pension Plans - June 4, 2003

• House Passes Pension Security Act With Significant Bipartisan Support - May 14, 2003

• House Approves Important Pension Protection as Part of Bipartisan Bankruptcy Legislation - March 20, 2003

• Workforce Committee Approves Bipartisan Pension Security Act - March 6, 2003

• Boehner, Johnson Reintroduce Bipartisan Pension Security Act - February 28, 2003

• Department of Labor Urges Congress to Pass the Bipartisan Pension Security Act - February 13, 2003

• Boehner Backs President's Proposals on Pension Security, Back to Work Accounts, Union Democracy - February 3, 2003

• Boehner, Johnson Announce Plans to Examine Financial Health of the Pension Benefit Guaranty Corporation - January 30, 2003

• Boehner, Johnson Praise President Bush, Secretary Chao for Acting Quickly to Implement Key Pension Protection - January 24, 2003

• Boehner Praises Bush Plans to Beef Up Enforcement of Pension Protection Laws - January 13, 2003

• Boehner, Johnson Announce Plans to Reintroduce Pension Security Act - January 7, 2003

• Boehner Answers Senate Democrats on Pension Reform: What Took You So Long? - January 7, 2003

Bill Summaries:

• Pension Funding Equity Act Conference Report (H.R. 3108) - April 2, 2004
• Pension Funding Equity Act (H.R. 3108 -- as passed originally by the House) - October 8, 2003
• Pension Security Act (H.R. 1000 -- as passed by the House) - May 15, 2003

Fact Sheets:

• Retirement Security for U.S. Workers: Six Principles for Fixing America’s Outdated Pension Laws - September 14, 2004
• Protecting Worker Pensions & Enhancing the Retirement Security of American Workers - July 22, 2004
• Myth vs. FACT:  Cash Balance Pension Plans - July 7, 2004
• Independent Research Findings Confirm Benefits of Cash Balance Pension Plans - July 7, 2004
• Why the IBM Pension Ruling is Flawed - July 7, 2004
• Protecting Worker Retirement Security: The Pension Funding Equity Act Conference Report - April 2, 2004
• Strengthening & Reforming Multiemployer Plans Will Help Provide Workers with a Safe and Secure Retirement - March 18, 2004
• Strengthening & Reforming Defined Benefit Plans Will Help Workers Better Prepare for a Safe and Secure Retirement - February 25, 2004
• Pension Underfunding Undermines Financial Health of the PBGC, Worker Retirement Security - September 4, 2003
• 30-Year Interest Rate Solution Critical to Strengthening Defined Benefit Pension Plans, Worker Retirement Security - July 15, 2003
• Pension Security Act Gives Workers Access to High-Quality, Professional Investment Advice - May 15, 2003
• Only Senior Corporate Executives Would Get Investment Advice Under Democrat “Alternative” Pension Bill - May 13, 2003
• Case Study -- How the Bipartisan Pension Security Act Would Have Helped Workers at Enron - May 9, 2003

Bush Administration Support:

• Statement of Administration Policy in Support of the Pension Funding Equity Act (H.R. 3108) - October 8, 2003
• Secretary of Labor Elaine L. Chao Applauds Passage of Retirement Security Bill - May 15, 2003
• Secretary of Labor Elaine L. Chao Applauds Boehner Bill to Strengthen Retirement Security - February 28, 2003

Charts:

• Number of Defined Benefit Pension Plans Decline - July 15, 2003

• Pension Protection NOW - May 14, 2003

• Quality Investment Advice:  Workers Remain Vulnerable - May 14, 2003

• Unfinished Business on Pension Security - May 14, 2003

Dear Colleague Letters:

• Support Generous Pension Benefits for Women and Low-Income Workers; Reject the Harmful Sanders Amendment - September 14, 2004

• Protect the Retirement & Pension Security of Working Americans; Reject the Harmful Sanders Amendment - September 14, 2004

• Oppose the Democrat Motion to Recommit; Oppose Attaching Controversial Provisions to Bipartisan 30-Year Pension Rate Fix - April 2, 2004

• Pension Shortfalls Highlight Need for Reform, Washington Post Article Illustrates - October 21, 2003

• “Pension Time Bomb” is Ticking, Washington Post Column Illustrates - July 16, 2003

• The Democrat Leadership Substitute Does Not Help ONE Worker Receive a Pension Plan - May 14, 2003

• Vote NO on the Democrat Leadership Substitute to the Pension Security Act - May 14, 2003

• Pension Security Act Encourages Professional Investment Advice, Includes Safeguards that Protect Workers - May 14, 2003

• Let’s Complete Our Unfinished Business on Corporate Accountability and Retirement Security - May 13, 2003

• Support Bipartisan Pension Protections - May 13, 2003

• Give Workers New Freedoms to Diversify their Portfolio Out of Company Stock - May 13, 2003

• Restore Worker Confidence in Our Pension System, Vote YES on the Pension Security Act - May 13, 2003

• Support the Bipartisan Pension Security Act (H.R. 1000) - May 9, 2003

• Support H.R. 1000, the Bipartisan Pension Security Act - March 25, 2003

• Bankruptcy Bill Includes an Important Pension Protection for American Workers - March 17, 2003

• New York Times Story Illustrates Why Boehner Advice Approach is Needed Now More than Ever - March 4, 2003

• Last Chance to be an Original Cosponsor of the Pension Security Act - February 11, 2003

• Restore Worker Confidence in Our Pension System - February 5, 2003

• Sign on as an Original Cosponsor of the Pension Security Act - January 29, 2003

• The Pension Security Act Gives Workers Unprecedented New Retirement Security Protections - January 24, 2003

• The Pension Security Act Provides Unprecedented New Retirement Security Protections - January 22, 2003

Committee Hearings and Markups:

• On July 7, 2004, the Full Committee held a hearing on "Examining Cash Balance Pension Plans: Separating Myth from Fact" -- Opening Statements & Witness Testimony
• On April 29, 2004, the Employer-Employee Relations Subcommittee held a hearing on “Examining Long-Term Solutions to Reform and Strengthen the Defined Benefit Pension System” -- Opening Statements & Witness Testimony
• On March 18, 2004, the Employer-Employee Relations Subcommittee held a hearing on "Reforming and Strengthening Defined Benefit Plans: Examining the Health of the Multiemployer Pension System” -- Opening Statements & Witness Testimony
• On February 25, 2004, the Full Committee held a hearing on “Strengthening Pension Security for All Americans: Are Workers Prepared for a Safe and Secure Retirement?” -- Opening Statements & Witness Testimony 
• On October 29, 2003, the Full Committee held a hearing on "The Pension Underfunding Crisis: How Effective Have Reforms Been?" -- Opening Statements & Witness Testimony
• On September 4, 2003, the Full Committee held a hearing on “Strengthening Pension Security and Defined Benefit Plans: Examining the Financial Health of the Pension Benefit Guaranty Corporation” -- Opening Statements & Witness Testimony
• On July 15, 2003, the Employer-Employee Relations Subcommittee held a hearing on "Examining Pension Security and Defined Benefit Plans: The Bush Administration’s Proposal to Replace the 30-year Treasury Rate” (Jointly with the Committee on Ways and Means Subcommittee on Select Revenue Measures) -- Opening Statements & Witness Testimony
• On June 4, 2003, the Employer-Employee Relations Subcommittee held a hearing on "Strengthening Pension Security: Examining the Health and Future of the Defined Benefit Plan" -- Opening Statements & Witness Testimony
• On March 6, 2003, the House Education & the Workforce Committee held a markup on H.R. 1000, the Pension Security Act and approved the bill on a 29-19 vote -- Opening Statements & Witness Testimony
• On February 13, 2003, the Employer-Employee Relations Subcommittee held a hearing on "The Pension Security Act: New Pension Protections to Safeguard the Retirement Savings of American Workers" -- Opening Statements & Witness Testimony