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OPA News Release: [07/26/2005]
Contact Name: David James or Gloria Della
Phone Number: (202) 693-4676 or (202) 693-8664
Release Number: 05-1439-NAT

U.S. Labor Secretary Elaine L. Chao Praises Senate Finance Chairman Grassley On Pension Reform Bill Markup

WASHINGTON—U.S. Secretary of Labor and Chairman of the Board of the Pension Benefit Guaranty Corp. Elaine L. Chao today praised Chairman Charles Grassley for his leadership of the Senate Finance Committee in acting quickly to pass bipartisan legislation to reform the nation's pension systems. The Committee unanimously approved the bill.

"Chairman Grassley's skillful leadership brings us closer to greater pension protection for workers and retirees," said Secretary Chao. "The President has made pension reform a top priority to ensure that pension promises made to workers and retirees are kept, and thanks to this bipartisan achievement today we are on track to seeing comprehensive pension reform.

"Chairman Grassley's legislation incorporates many key elements of the Administration's proposal — accurately measuring pension assets and liabilities, providing increased disclosure to workers and ensuring the solvency of the pension insurance system.

"We look forward to working with Chairman Grassley and his colleagues to improve the legislation as it moves through the Senate. Specifically, we are concerned that the legislation allows severely underfunded plans to take funding holidays through the use of credit balances, delays and limits the applicability of the at risk funding target for financially weak firms, and provides special rules for certain airlines that deny workers in these plans the full protections of the legislation."

A fact sheet about the Administration's plan for strengthening retirement security through comprehensive pension reform can be found at http://www.dol.gov/opa/media/press/opa/retirementsecurityfactsheet.htm. For additional information about pension reform, visit the department's dedicated Web page at www.dol.gov/ebsa.

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