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Johnson
Contact: McCall Cameron (202)225-4201


House passes Johnson’s pension-reform bill

Washington, Dec 15 -

After more than two years of working to strengthen the
employer-provided pension system, Congressman Sam Johnson (3rd
Dist.-Texas) announced that the U.S. House of Representatives passed
his bill to revamp the pension system to protect employees and
taxpayers.  The House passed the Pension Protection Act 294 – 132.



“This is a good and tough bill that makes companies put their money
behind their promises and gives employees good information on the
health of their pension plan,” said Johnson.  Johnson chairs the
Subcommittee that oversees pension law, the Subcommittee on
Employer-Employee Relations and serves on the other committee with
authority over this issue, the Ways and Means Committee.



The measure balances reforms to ensure employers more accurately
measure and fund their short-term and long-term pension promises,
creates tough new funding requirements to ensure plans are adequately
and consistently funded, and establishes meaningful disclosure
provisions about the financial status of pension benefits.



“It’s a shame that our pension laws have allowed those most affected –
workers and retirees – to be left in the dark and that there may be
little money behind the pension promises of a secure retirement
fund.  The proposed change couldn’t come at a better time as it
comes on the heels of the United Airlines Pilots’ pension plan collapse
which was only 30% funded.  Those pilots and their families didn’t
know how bad off the situation was and they are the ones trying to
figure out how to live on one-third of that they planned to receive,”
said Johnson.



The bill also creates “phased retirement,” a much-need reform given the
pending retirement of the Baby Boomer generation.   This
provision would allow people to continue working but also collect their
employer-based pension after the age of 62.  Current rules
prohibit working for the same employer while also collecting a
pension.  This prohibition simply forces many people to change
jobs and work for a competitor or stop working all together.  “My
constituents believe that this is a better way to step into
retirement,” continued Johnson.



The bill also tightens funding rules so that under-funded plans are not
dumped on the government – The Pension Benefit Guaranty Corporation
(PBGC).  The PBGC estimates to be $28 billion in the red. 
Companies need to fund their promises, not rely on the government to do
it.  We can not leave the taxpayers holding the bag,” concluded
Johnson.



The measure will now go to Conference with the Senate.  



Johnson represents the Third Congressional District which includes portions of Dallas and Collin Counties